Investing.com - Gold Futures traded lower on Tuesday, as the dollar moved off session lows, ahead of President Trump’s speech to congress.
Gold for May delivery on the Comex division of the New York Mercantile Exchange shed $6.30 or 0.5%, to trade at $1,252.75 a troy ounce by 13:30 EST.
Despite a mixed batch of U.S. economic data, gold futures struggled for direction in mid-afternoon trade, as President Trump’s address to congress on Tuesday at 9 PM EST remained front and center.
Gross domestic product (GDP) rose at a 1.9% annual rate in the final three months of 2016, the Commerce Department said on Tuesday in its second estimate for the period. Analysts expected a 2.1% annual rate increase.
The Consumer Confidence Index, which measures consumers’ assessment of current conditions in the U.S., hit 114.8 in February, according to data from The Conference Board. Economist expected the Consumer Confidence index to hit 111 in February.
The mixed bag of economic data came amid renewed hopes of a March interest rate hike, after Dallas Fed President Robert Kaplan on Monday reiterated his view that a rate hike should come sooner rather than later.
Fed fund futures priced in about a 40% chance of a rate hike in March, according to Investing.com’s Fed Rate Monitor Tool.
Gold is sensitive to moves in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Meanwhile on the Comex, silver futures for May delivery nabbed 5 cents, or 0.24%, to $18.46 a troy ounce after reaching $18.54 on Monday, the highest since November 11.
Copper traded higher at $2.70 while natural gas added 2.93% to trade at $2.77.