Investing.com - Gold prices fell slightly in Asia on Tuesday on profit-taking after gains made on geopolitical tensions over the Ukraine.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,322.40 a troy ounce, down 0.38%, after hitting an overnight session low of $1,319.00 and off a high of $1,331.30.
Geopolitical concerns gave gold a boost on Monday.
Tensions between Russia and Ukraine mounted after a deadline set by Ukraine for pro-Russian separatists to exit government buildings they are occupying in the eastern reaches of the country expired on Monday.
The U.S. has indicated that it is prepared to impose more sanctions against Moscow if Russian encroachments in eastern Ukraine continue.
Gold has acted as a beneficiary during the standoff over fears escalated tensions could bruise the dollar, which trades inversely with the yellow metal.
Solid data in the U.S. took a back seat to Ukraine-related unease.
The Commerce Department reported earlier that U.S. retail sales rose 1.1% in March, exceeding expectations for a 0.8% gain. Retail sales in February were revised up to a 0.7% increase from a previously estimated 0.3% rise.
Core retail sales, which exclude automobiles, rose 0.7% last month, beating expectations for a 0.5% reading, after a 0.3% gain in February
Consumer demand drives the bulk of U.S. economic output, and the numbers fueled expectations that the Federal Reserve will continue to wind down its monthly asset-purchasing program as the year unfolds.
Fed asset purchases, currently standing at $55 billion a month, weaken the greenback by suppressing borrowing costs to spur recovery, thus boosting gold's appeal as a hedge.
Talk of waning monetary intervention often has the reverse effect.
Elsewhere in the U.S., data revealed U.S. business inventories rose less than expected.
In a report, Census Bureau reported earlier that U.S. business inventories rose 0.4% in February from 0.4% in the preceding month.
Analysts were expecting a 0.5% reading in February.
Meanwhile, silver for May delivery was down 0.66% at US$19.877 a troy ounce, while copper futures for May delivery were down 0.38% at US$3.030 a pound.