The price of gold was ticking lower Wednesday morning amid a mixed U.S. dollar and on lingering worries over the euro zone financial situation.
Gold for August delivery, the most actively traded contract, eased $1.40 to $1,612.40 an ounce. Yesterday, gold settled above the $1,600-mark for the first time in four days, fueled by hopes of further monetary stimulus as Spanish bond yields soared to record levels notwithstanding the bailout plans for the country's banking system.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 1,274.37 tons from 1,274.79 tons.
This morning, the U.S. dollar was hovering around its two-year high versus the euro and easing to a two-week low against sterling. The buck was moving lower versus the Swiss franc, while ticking higher against the yen.
In economic news, euro zone industrial production declined in April, at a slower than expected pace, data from Eurostat showed. Industrial production logged a monthly fall of 0.8 percent in April after easing 0.1 percent in March. The decline was smaller than economists' expectations for a 1.2 percent drop.
Meanwhile, Germany's harmonized consumer prices rose more than initially estimated in May, final data from the Federal Statistical Office revealed. EU harmonized inflation came in at 2.2 percent in May, revised up from the prior estimate of 2.1 percent. The rate was thus unchanged from the 2.2 percent seen in April.
Elsewhere, the prices of silver and platinum were ticking lower in morning deals.
From the U.S., the Commerce Department will release its retail sales report at 8:30 am ET. For May, economists estimate a 0.2 percent drop in retail sales and a 0.1 percent dip in retail sales that exclude autos. On the other hand, sales, excluding autos and gasoline, may have risen 0.4 percent.
Simultaneously, , the Labor Department is scheduled to release its report on the producer price index for May. Economists expect the headline index for May to have declined by 0.6 percent but the core producer price index to have increased by 0.2 percent.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Market Analysis