Investing.com -- Gold futures fell slightly on Tuesday as metal investors locked in profits, in spite of a weaker dollar pushed down by mixed U.S. economic data.
On the Comex division of the New York Mercantile Exchange, gold prices for June delivery dipped 7.10 or 0.59% to $1,192.20 an ounce. Gold futures plunged to a daily-low of $1,183.50 shortly before U.S. markets opened, but then rose steadily throughout the day to pare some of the losses.
Last Thursday, gold dropped to $1,192.40, its lowest level since April 1, before rebounding on Friday to close the week at $1,204.60, rising $11.00 on the session. For the week, the precious metal rose by nearly $4 an ounce to post its fourth straight weekly gain.
This week, however, gold futures are on a two-day slump erasing all of its mild gains for the month.
Gold likely gained support at $1,149 the low from March 17 and resistance at $1,203.10, the high from April 8.
A host of economic data released on Tuesday morning prompted a polarizing response from economists. U.S. retail sales for March rose 0.9% for the month, marking its first monthly in more than three months. Strong gains in automobile, furniture and department store sales, led to the highest monthly increase since last March.
The data may not be considered bullish, however, since some economists forecasted a weather-related bounce of more than 1%, following a harsher than usual winter. A reading over 1% might have assuaged the concerns of those who were bearish on the economy following a weaker than expected U.S. jobs report in March.
At the same time, the U.S. Department of Labor's Producer Price Index rose 0.2% last month following a 0.5% decline in February. The increase is a strong harbinger for continued growth in the Consumer Price Index, the Labor Department's main indicator on inflation. The Fed is looking for inflation to move to its targeted goal of 2% before it decides on the timing of an interest rate hike. The index rebounded 0.2% in February, after declining sharply by 0.7% a month earlier.
Continued bearish economic data could fuel expectations for a delay in raising rates. Gold, which is not attached to interest rates or dividends, struggles to compete with high yield bearing assets.
The U.S. Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, fell 0.06% to 98.95.
Gold can move inversely with the dollar since dollar-denominated commodities become more expensive for foreign purchasers when the dollar is stronger.
Meanwhile, prices on the Shanghai Gold Exchange remained in focus after disappointing Chinese trade data on Monday. Last month, exports in China declined by 15% on a year-over-year basis, one month after rising by nearly 50%. Chinese imports for March also fell by 12.7%, after declining by 20.5% in February. On Tuesday, gold (Au50g) on the Shanghai Exchange remained virtually unchanged at 114.88 (0.05).
China is the world's largest producer and second-largest purchaser of the precious metal.
Also on Monday, Frederic Panizzutti, CEO of MKS Precious Metals told a conference in Dubai that Chinese consumption grow to "more than 2,000 tons per year," by 2018. Last year, China consumed approximately 813 tons of gold.
Elsewhere, Silver for May delivery fell 0.015 or 0.09% to 16.13 a troy ounce.
Copper for May delivery also dipped 0.002 or 0.06% to 2.704 a pound.