Gold hits a two-week low in early U.S. trading
Bullion prices ended lower at Comex on Tuesday, 14 April 2015. Gold prices ended the U.S. day session moderately lower on Tuesday, but up from solid losses that saw prices hit a two-week low in early U.S. trading. Gold futures trimmed losses early Tuesday after a weaker-than-expected rebound in U.S. retail sales for March, but still settled at their lowest level of the month as traders weighed the timing of an interest-rate hike by the Federal Reserve.
Gold for June delivery on Comex fell $6.70, or 0.6%, to end at $1,192.60 an ounce.
May silver fell 13 cents, or 0.8%, to $16.161 an ounce.
Gold prices Tuesday pared earlier losses after data showed that the rise in U.S. retail sales wasn't as strong as expected. The Commerce Department said March retail sales rose by a seasonally adjusted 0.9%, the strongest gain in a year but below the 1.1% rise forecast by market. Also, a bit hotter-than-expected U.S. producer price index report Tuesday was a mixed bag for gold and silver. Producer prices rose by a seasonally adjusted 0.2% in March after four straight months of declines. Market had penciled in a rise of 0.3%.
Gold prices recovered about half of the losses seen earlier Tuesday after an ensuing sharp drop in the U.S. dollar index provided an upside lift to the metals. The 0.2% rise in March PPI somewhat eased deflation concerns, which is a bullish development for the raw commodity sector. However, the PPI report also bolsters notions the Federal Reserve could move to raise interest rates sooner rather than later.
The other key outside market saws crude oil prices solidly higher on Tuesday.
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