LONDON: Gold prices fell on Tuesday after better-than-expected US retail sales data lowered expectations of an interest rate cut by the US Federal Reserve and boosted the dollar.

Spot gold inched down 0.3 per cent to $1,409.71 per ounce as of 10:15 am EDT (14:15 GMT). US gold futures slipped 0.1pc to $1,411.40 per ounce.

“The gold market is more reliant on the macro factors to be driven higher. If we continue to see stronger data like the retail numbers, it presents a headwind for the market,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.

“The key event the market is tracking is the July FOMC meeting and the Fed rate cut expectations, and we have seen that the expectations have declined a little bit.” The U.S Commerce Department said retail sales rose 0.4pc last month as households stepped up purchases of motor vehicles and a variety of other goods.

Economists polled by Reuters had forecast retail sales edging up 0.1pc in June.

On the technical front, spot gold was holding in a narrow range of $1,404-$1,421, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver rose 1.5 pc to $15.62 per ounce, after touching its highest since Feb 28 at $15.66 earlier in the session.

Platinum was up 1pc at $847.43, after touching its highest since May 15 at $850.46, while palladium dipped 1pc to $1,552.49 per ounce.

Published in Dawn, July 17th, 2019