Gold Futures Cut Back on Losses

Gold futures capped losses yesterday following a weak recovery of US retail sales last month although it still remained at the lowest level as market players watched closely at the probability of the Fed’s interest rate increase.

Gold for settlement this June at COMEX decreased $6.70 (0.6 percent) to remain at $1,192.60 per ounce. This is said to be the lowest futures price payment since March 31. Silver also dropped 13 cents (0.8 percent) to $16.161 per ounce.

According to a group of financial consultants, outlook on gold is very bearish even if the decline of oil prices which is beneficial to the mining sector is being disregarded.

The US Department of Commerce announced retail sales in March increased 0.9 percent which is the strongest in one year but still fell short of the 1.1 percent growth expected by economic experts, based on a Market Watch survey.

Producers’ prices went up 0.2 percent after four consecutive months of degeneration.

Meanwhile, the common currency traded at 1.0659 against the US dollar on Tuesday.

For other precious metals, platinum for July dropped 20 cents to $1,153.70 per ounce. On the other hand, palladium for June gave up $8.90 (1.2 percent) to $762.50 per ounce.

Copper for May settlement declined 1.9 cents (0.7 percent) to $2.70 per pound.