On Tuesday gold prices trimmed losses,
after data showed that in March retail sales in the U.S. rose less than expected.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery touched an intraday low of $1,183.70 a troy ounce, the weakest level since April 1, before trading at $1,190.30 during U.S. morning hours, down $9.00, or 0.75%.
On Monday, gold declined $5.30, or 0.44%, to close at $1,199.30. Futures were likely to find support at $1,180.50, the low from April 1, and resistance at $1,224.50, the high from April 6.
According to the U.S. Commerce Department, retail sales increased by 0.9% in March, disappointing expectations for a gain of 1.0%. Core retail sales, which exclude automobile sales, climbed by 0.4% in March, missing forecasts for a 0.6% increase.
Another report indicated that producer prices rose by 0.2% last month, in line with forecasts, while the core producer price index eased up 0.2% last month, compared to forecasts for a gain of 0.1%.
The downbeat data sparked fresh fears over the strength of the US economy, driving uncertainty over the timing of a rate hike.
The dollar declined against its Canadian peer on the negative data with USD/CAD hitting 1.2475 during early U.S. trade, the pair's lowest since April 8. The pair subsequently consolidated at 1.2482, retreating 0.92%
Silver futures for May delivery fell 19.1 cents, or 1.17%, to trade at $16.10 a troy ounce, while copper for May delivery dipped 3.4 cents, or 1.26%, to trade at $2.685 a pound.
Copper traders anticipated the release of China's first-quarter gross domestic product figures on Wednesday, expecting to see the world's second largest economy grow 7.0%, slowing from 7.3% in the preceding quarter. China's government has set a growth target of "around 7.0%" in 2015 after the economy grew 7.4% in 2014, the slowest pace in 24 years.
The Asian nation is considered to be the world’s largest copper consumer.
