Gold prices were seen trading lower, slipping from a three-month high on Tuesday, while traders focus on the ongoing situation in Ukraine.
Gold for immediate delivery edged 0.54% lower to $1,320.30 an ounce at the time of writing, while silver futures slipped 0.65% lower to $19.88 an ounce at the same time.
The yellow metal reached $1,331.20 an ounce on Monday, the highest level since March 24. The metal was lifted by the tension in Ukraine on Monday but later dropped, following the release of the upbeat US data.
The dollar index, the index that measures the strength of the greenback against a basket of its major peers, climbed 0.05% higher at 79.77 at the time of writing.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust; climbed 1.8 tons to 806.22 tons on Monday, the highest in three weeks.
Gold – Ukraine
Over the weekend, rebels took over the police and government buildings in several cities across the eastern region of Ukraine after a Ukrainian secret service agent died in a shooting near the city of Slovyansk. Officials from the Western nations as well as Russia continue to accuse each other over the violence.
However on Monday, Ukraine’s interim president and parliament speaker Oleksandr Turchynov said there was a possibility of a national referendum on granting regional autonomy. Turchynov also called on the United Nations to send peacekeepers to help the country.
Gold – US Data
Data released by the US Department of Commerce on Monday showed that retail sales in the US rose 1.1% in March, higher than analysts’ forecasts of a 0.8% rise and compared to the previous figure of a 0.7% gain in February.
Core retail sales climbed 0.8% higher, compared to analysts’ estimates of 0.5% and higher than the revised increase of 0.4% seen in the previous month.
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