After ending the previous session little changed, the price of gold moved to the downside during the trading day on Tuesday.
Gold for December delivery fell $13.40 to $1,736.30 an ounce after ending Monday’s trading down just $0.10 at $1,749.70 an ounce.
The decrease in the price of the precious metal came even as the value of the U.S. showed a lack of direction, with the U.S. dollar index down by less than a tenth of a percent.
“Gold prices are declining as investors continue to see a wrath of elevated inflation data that supports the argument of further global central bank tightening,” said Edward Moya, senior market analysts and OANDA. “Gold’s rough patch seems like it will continue a little while longer as gold-backed ETFs continue to see outflows.”
“A weaker dollar and a flight-to-safety might be what is needed for gold to stabilize and that could be happening,” he added. “If the ECB doesn’t disappoint and delivers a massive 75 basis-point rate increase and if equities tumble as earnings expectations crumble, gold’s bleeding could stop. Geopolitical risks and the global energy crisis impact to growth should eventually lead to safe-haven flows for the yellow metal.”
On the U.S. economic front, the Conference Board released a report this morning showing consumer confidence rebounded by more than expected in the month of August.
The Conference Board said its consumer confidence index jumped to 103.2 in August from a downwardly revised 95.3 in July.
Economists had expected the consumer confidence index to climb to 97.4 from the 95.7 originally reported for the previous month.
A separate report from the Labor Department showed the number of job openings was little changed at 11.2 million on the last business day of July
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