Gold futures plunged to end at a four-week low Tuesday, as investors continued to be apprehensive at the outcome of the two-day U.S. Federal Reserve's policy meet later this week which will decide the fate of the quantitative easing program. Investors also weighed in some mixed macroeconomic data out of the U.S. with consumer prices rising modestly although below expectations.
Consumer prices in the U.S. inched up in May, but came in less than expected. Meanwhile, new residential construction in the U.S. showed a significant rebound in May, but were still below economists' estimates.
Gold for August delivery, the most actively traded contract, plunged $16.20 or 1.2 percent to close at $1,366.90 an ounce Tuesday on the Comex division of the New York Mercantile Exchange.
Gold for August delivery scaled an intraday high of $1385.40 and a low of $1,360.20 an ounce.
Yesterday, the precious metal settled marginally lower ahead of the two-day Federal Reserve's policy meet outcome later this week and on some upbeat macroeconomic data from the U.S.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were at 1,003.17 tons.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.58 on Tuesday, down from 80.65 late Monday in North American trade. The dollar scaled a high of 80.99 intraday and a low of 80.56.
The euro traded higher against the dollar at $1.3409 on Tuesday, as compared to $1.3366 late Monday in North America. The euro scaled a high of $1.3415 intraday and a low of $1.3326.
In economic news from the U.S., new residential construction in the U.S. showed a significant rebound in May, but housing starts still came in well below economists' estimate, a Commerce Department report said Tuesday.
Housing starts in May climbed 6.8 percent to a seasonally adjusted annual rate of 914,000 from the revised April estimate of 856,000. The increase follows a 14.8 percent drop in the previous month. Economists expected housing starts to surge up to an annual rate of 955,000 compared to the 853,000 originally reported for April.
Meanwhile, building permits, an indicator of future housing demand, fell 3.1 percent to an annual rate of 974,000 in May from the revised April rate of 1.005 million. The drop, which followed a 12.9 percent jump in April, were roughly in line with expectations.
Consumer prices in the U.S. increased modestly in May, after having reported decreases in each of the two previous months, a Labor Department report showed Tuesday. The consumer price index for May inched up by 0.1 percent after falling by 0.4 percent in April and dipping by 0.2 percent in March. Economists anticipated the index to edge up by 0.2 percent.
From the eurozone, Germany's investor confidence rose more-than-expected in June after remaining broadly unchanged in the previous month, signaling prospects of a further pick up in recovery that began early this year. Data from the Centre for European Economic Research/ZEW showed the Indicator of Economic Sentiment climbed to a three-month high of 38.5 from 36.4 in May. Economists had forecast a more modest rise to 38.1.
Elsewhere in Europe, consumer price inflation in the U.K. rose more than expected in May, driven largely by the previous month's steep increase in air-fares, smaller decrease in fuel costs and a rise in clothing prices, a report from the Office for National Statistics showed Tuesday. The rate of inflation rose to 2.7 percent in May from 2.4 percent in April. Economists expected an increase to 2.6 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.