News Column

Gold Remains Stuck Near USD1,310 Ahead Of Retail Sales

August 13, 2014

WASHINGTON (Alliance News) - Gold prices are barely budging for a third straight day Wednesday morning, weighed by strong global equity markets.

Traders are looking ahead to US retail sales data and a report on business inventories due later this morning, and await speeches await a pair of speeches from Federal Reserve officials.

Geopolitical developments are also being watched. A convoy of 260 Russian trucks carrying humanitarian aid and headed for Ukraine, is likely to be denied entry by the Ukrainian government.

Meanwhile, the three-day truce in the Gaza Strip ends later Wednesday.

Gold futures for Wednesday are down USD1.20 or 0.09% at USD1,309.40 an ounce.

On Tuesday, gold futures ended up USD0.10 at USD1,310.60 an ounce, after moving in a tight range.

Silver for September is up USD0.050 or 0.25% at USD19.955 an ounce. Meanwhile, copper is down USD0.23 or 0.72% at USD3.132 per pound amid worries about weak demand on the back of weak Chinese industrial data.

The Bank of England, in its quarterly inflation report, lowered its wage growth estimate and stated that interest rate hike will be gradual.

With inflation projected to remain close to the 2% target, it now looks the interest rates are likely to stay at historically low levels for sometime.

The US Commerce Department will release retail sales data at 8:30 am ET. Economists expect retail sales growth of 0.2% month-over-month, while excluding autos retail sales is estimated to have risen 0.4%.

Data on business inventories will be released by the US Commerce Department at 10 am ET.

The New York Federal Reserve President William Dudley and Boston Federal Reserve Bank President Eric Rosengren will address at the workshop on wholesale funding risks in New York later this morning.

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Source: Alliance News

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