MTECHTIPS;-Gold inches up on cautious applause of U.S. retail sales data
MTECHTIPS;-Gold inches up on cautious applause of U.S. retail sales data
Gold prices crept up in Asian trading on Tuesday as investors cautiously embraced risk early in the session on news U.S. retail sales beat expectations, ditching the safe-haven dollar in the process.
Weaker-than-expected U.S. factory offset gold’s gains, allowing for choppy trading.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.01% at USD1,737.75 a troy ounce, up from a session low of USD1,736.85 and down from a high of USD1,739.75 a troy ounce.Gold futures were likely to test support at USD1,730.15 a troy ounce, Monday’s low, and resistance at USD1,750.55, Monday’s high.The dollar, which normally trades inversely with gold, weakened on news retail sales in the U.S. beat expectations, which fueled investor appetite for risk.The Commerce Department reported earlier that retail sales rose by a seasonally adjusted 1.1% in September, outpacing market calls for a 0.8% increase.Retail sales in August were revised up to a 1.2% gain from a previously reported increase of 0.9%.Core retail sales, which exclude automobile sales, rose by 1.1%, beating expectations for a 0.6% increase.The dollar, however, saw some demand on a report showing that manufacturing activity in New York state contracted for the third consecutive month, which marred the yellow metal’s luster in the session.
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