Gold prices traded in a tight range Tuesday in the US with physical demand stagnant even with declining prices.
Gold for August delivery on the Comex division of the New York Mercantile Exchange was last down $2.70 or 0.2 percent to $1,104.10 per ounce. Trade has ranged from $1,095.90 to $1,108.80.
Swiss customs data showed that gold outflows in June were at lowest level since August 2014 at 98.5 tonnes.
“The decline in gold being shipped out of Switzerland to the rest of the world in a sense indicates slower physical demand, and indeed ties in with overall market feedback,” Joni Teves, an analyst at UBS, said.
Teves provided a caveat that physical demand is typically slow in the summer and physical buyers are waiting for “clearer signs of stability before scooping up cheaper metal”.
Even as dollar shed last week’s gains – it is currently 1.2 percent softer at $1.0953 against the euro – the yellow-metal couldn’t reverse the heavy losses taken place on Monday.
During the opening of the Asian markets on Monday, precious metals sustained a “flash crash” which erased 5 percent of the value of gold in minutes.
An additional factor pertaining to gold is an impending interest rate rise from the Federal Reserve.
The tone in recent weeks from various Fed members has grown hawkish with St. Louis Fed president, James Bullard, placing odds of “more than a 50 percent probability” of a rate rise in 2015, in a recent interview with Fox Business.
In US equities, the Dow Jones industrial average and S&P were down 1.2 percent and 0.6 percent respectively.
There was no significant data released today, with EU consumer confidence and US weekly unemployment claims on the agenda for tomorrow.
As for other precious metals, Comex silver for September delivery was rose 1.2 cents to $14.755 per ounce. Trade has ranged from $14.615 to $14.930.
Platinum for October settlement was down $8.20 to $980.40, while the most actively traded palladium contract was at $626.25, up $14.20.
(Editing by Tom Jennemann)
The post Gold lacks motivation amid lacklustre physical demand appeared first on The Bullion Desk.
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