Investing.com - Gold prices dropped in U.S. trading on Tuesday after factory output reports out of Europe and China missed expectations and sent investors chasing safe-haven dollar positions.
Gold and the dollar tend to trade inversely from one another, and weaker-than-expected home sales figures in the U.S. further bolstered the greenback's appeal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.64% at USD1,412.05 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,404.05 and down from a high of USD1,432.35 a troy ounce.
Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high.
An HSBC Holdings/Markit Economics purchasing managers index for China came in at a preliminary 50.5 for April, below analysts' calls for a 51.4 reading.
Similar figures out of Europe also took their toll on gold prices Tuesday.
Data released earlier by Markit Economics revealed that Germany’s April manufacturing purchasing managers index fell to 47.9 from 49.0 in March, well below the 50 level that separates contraction from expansion.
Analysts were hoping for the production barometer to remain unchanged.
Germany’s service-sector PMI, meanwhile, came in at 49.2, down from 50.9 in March and below market calls for a 51.0 reading.
The numbers sparked fears the German economy, the eurozone’s largest, could contract in the first quarter, which added to already growing speculation that the European Central Bank may trim benchmark interest rates to spur recovery, which further enhanced the greenback's image.
The eurozone’s April manufacturing PMI fell to 46.5 from 46.8 in March, worse than expectations for an unchanged reading.
The currency bloc’s service-sector PMI rose to 46.6 from 46.4 in March, in line with expectations.
France’s manufacturing PMI gained to 44.4 in April from March’s reading of 44.0, while the French service-sector PMI rose to an eight-month high of 44.1 in April from a final reading of 41.3 in March, though the numbers did little to quash fears of an ECB move.
Meanwhile in the U.S., the Census Bureau reported earlier that new home sales rose by 1.5% to 417,000 units in March, falling short of market expectations for a gain to 420,000.
New home sales for February were left unrevised at 411,000 units.
A Federal Reserve report released earlier that the Richmond manufacturing index came in at -6 in April, down from 3 in March.
Analysts were expecting the index to remain unchanged.
Elsewhere on the Comex, silver for May delivery was down 1.90% at USD22.880 a troy ounce, while copper for May delivery was down 1.13% and trading at USD3.096 a pound.
Gold and the dollar tend to trade inversely from one another, and weaker-than-expected home sales figures in the U.S. further bolstered the greenback's appeal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.64% at USD1,412.05 a troy ounce in U.S. trading on Tuesday, up from a session low of USD1,404.05 and down from a high of USD1,432.35 a troy ounce.
Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high.
An HSBC Holdings/Markit Economics purchasing managers index for China came in at a preliminary 50.5 for April, below analysts' calls for a 51.4 reading.
Similar figures out of Europe also took their toll on gold prices Tuesday.
Data released earlier by Markit Economics revealed that Germany’s April manufacturing purchasing managers index fell to 47.9 from 49.0 in March, well below the 50 level that separates contraction from expansion.
Analysts were hoping for the production barometer to remain unchanged.
Germany’s service-sector PMI, meanwhile, came in at 49.2, down from 50.9 in March and below market calls for a 51.0 reading.
The numbers sparked fears the German economy, the eurozone’s largest, could contract in the first quarter, which added to already growing speculation that the European Central Bank may trim benchmark interest rates to spur recovery, which further enhanced the greenback's image.
The eurozone’s April manufacturing PMI fell to 46.5 from 46.8 in March, worse than expectations for an unchanged reading.
The currency bloc’s service-sector PMI rose to 46.6 from 46.4 in March, in line with expectations.
France’s manufacturing PMI gained to 44.4 in April from March’s reading of 44.0, while the French service-sector PMI rose to an eight-month high of 44.1 in April from a final reading of 41.3 in March, though the numbers did little to quash fears of an ECB move.
Meanwhile in the U.S., the Census Bureau reported earlier that new home sales rose by 1.5% to 417,000 units in March, falling short of market expectations for a gain to 420,000.
New home sales for February were left unrevised at 411,000 units.
A Federal Reserve report released earlier that the Richmond manufacturing index came in at -6 in April, down from 3 in March.
Analysts were expecting the index to remain unchanged.
Elsewhere on the Comex, silver for May delivery was down 1.90% at USD22.880 a troy ounce, while copper for May delivery was down 1.13% and trading at USD3.096 a pound.