On Monday gold prices edged lower in a quiet trade, as investors awaited key U.S. data later this week for further indications on
the strength of the economy and the timing of an interest rate hike.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery shed $4.90, or 0.41%, to trade at $1,199.70 a troy ounce during European morning hours.
Investors are awaiting Tuesday’s report on U.S. retail sales, as well as Friday’s reports on inflation and consumer sentiment. The U.S. is also due to produce data on industrial production, building permits and housing starts throughout the week.
Signs that the U.S. economy slowed in the first quarter drove speculation that the Federal Reserve will delay hiking interest rates until late 2015, thus sending gold prices nearly 5% higher after the gold hit a recent low of $1,140.60 on March 17.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Silver futures for May delivery inched down 8.5 cents, or 0.52%, to trade at $16.29 a troy ounce, while copper for May delivery tacked on 1.1 cents, or 0.4%, to trade at $2.745 a pound.
Copper prices edged higher as disappointing Chinese trade data fuelled speculation policymakers in Beijing will have to do more to jumpstart the economy.
China reported a trade surplus of $3.08 billion in March, compared to expectations for a surplus of $45.4 billion and down from a surplus of $60.6 in February.
Exports dropped 15.0% from a year earlier last month, disappointing expectations for a 12.0% increase, while imports sank 12.7%, worse than forecasts for a decline of 11.7%.
