Gold slips after strong US data as focus turns to Powell

London, June 27 (BNA) – Gold reversed its slide on Tuesday after strong US economic readings, as traders braced for Federal Reserve Chairman Jerome Powell’s speech and more data that could provide clues to future rate hikes.

According to Reuters, spot gold fell 0.2% to $1918.19 an ounce by 10:37 AM ET (1437 GMT), while US gold futures fell 0.3% to $1927.70.

US consumer confidence increased in June to the highest level in nearly a year and a half, while single-family new home sales rose more-than-expected, 12.2% in May.

“Gold didn’t like the news, because better economic data will drive the Fed’s tightening outlook and that should lift yields as well,” said Edward Moya, senior market analyst at OANDA.

Benchmark 10-year Treasury yields rose, making interest-free gold less attractive.

Gold has lost about 2.2% this month – setting for a second straight monthly decline if losses continue – as bets on higher US interest rates for a longer period dampened the appeal of zero-yielding assets and overshadowed their role as a more or less traditional safe haven.

Investors were awaiting Federal Reserve Chairman Jerome Powell’s upcoming speech, along with a batch of key economic data on Thursday.

“Between now and Thursday, you’re going to see a bearish market in gold, a sideways market here in gold, unless something else breaks,” said Bob Haberkorn, chief market strategist at RJO Futures.

Silver advanced 0.6% to $22.91 an ounce and was heading for a third straight session of gains.

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Platinum fell 0.8% to $916.43, and palladium fell 0.6% to $1,298.05.


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