Investing.com - Gold prices were little changed in rangebound trade on Tuesday, despite data showing that U.S. retail sales increased more-than-expected in December, while core sales also topped forecasts.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,249.50 a troy ounce during U.S. morning trade, down 0.1%. Gold prices held in a tight range between USD1,246.60 a troy ounce and USD1,253.80 a troy ounce.
The February contract rose to USD1,255.30 a troy ounce on Monday, the highest since December 12, before trimming gains to settle at USD1,251.10 a troy ounce, up 0.34%.
Futures were likely to find support at USD1,226.60 a troy ounce, the low from January 10 and resistance at USD1,262.90, the high from December 11.
Meanwhile, silver for March dipped 0.15% to trade at USD20.35 a troy ounce. Comex silver prices trimmed gains after hitting a session high of USD20.47 a troy ounce, the strongest since December 11. The March contract ended Monday’s session with a gain of 0.8% to settle at USD20.38 a troy ounce.
The U.S. Commerce Department said that retail sales rose by a seasonally adjusted 0.2% last month, beating expectations for a 0.1% increase. Retail sales for November were revised down to a 0.4% gain from a previously reported increase of 0.7%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, edged up 0.7% last month, above forecasts for a 0.4% increase. Core sales rose by 0.1% in November.
Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.
Market players now looked ahead to speeches by two Federal Reserve officials later in the day for further indications on the future course of U.S. monetary policy.
Philadelphia Federal Reserve President Charles Plosser will speak on the economic outlook in Philadelphia, while Dallas Fed President Richard Fisher will give his outlook for the U.S. economy at a luncheon in Dallas.
Atlanta Fed President Dennis Lockhart voiced his support of further tapering to the one already announced in December on Monday. The central bank is scheduled to meet January 28-29 to review the economy and assess policy.
Elsewhere on the Comex, copper futures for March delivery inched down 0.1% to trade at USD3.343 a pound.