Investing.com - Gold prices struggled near the lowest level in almost two weeks during Europe's session on Wednesday, ahead of a closely-watched U.S. retail sales report on Thursday, which is expected to shape the market's near-term interest rate expectations.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell to a daily low of $1,316.60 a troy ounce, the weakest since September 2. It was last at $1,324.95 by 3:20AM ET (07:20GMT), up $1.35, or 0.1%. A day earlier, the yellow metal slumped $1.90, or 0.14%.
The Commerce Department will publish data on August retail sales on Thursday as investors continue to speculate over the timing of future U.S. interest rate increases.
The consensus forecast is that the report will show retail sales dipped 0.1% last month, after holding flat in July. Core sales are forecast to inch up 0.2%, after falling 0.3% a month earlier.
Declining retail sales over time correlate with weaker economic growth, while rising sales signal a strengthening economy. Consumer spending accounts for as much as 70% of U.S. economic growth.
Markets are pricing in just a 15% chance of a rate hike at the Federal Reserve's September 20-21 meeting, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 56%.
Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Also on the Comex, silver futures for December delivery climbed 11.2 cents, or 0.59%, to trade at $19.08 a troy ounce during morning hours in London, while copper futures gained 1.4 cents, or 0.64%, to $2.115 a pound.