Gold slipped despite less-than-impressive US retail sales figures left investors disappointed.
With all data this week potentially affecting the Federal Reserve’s interest rate decision on Thursday, the key question is whether the US economy is robust enough to weather a rate rise.
Retail sales figures did little to solve this mystery, rising modestly in August by 0.2%.
Dennis de Jong at forex broker UFX said: “With only two days to go until one of the most anticipated Fed decisions in years, the US markets were looking for some buoyant data and will be disappointed that the retail sales figures haven’t delivered.
“That said,” he added, “even slight improvement is still a positive, especially considering weak inflation recently.”
David Govett at Marex Spectron added: “Markets will be nervous, thin and jumpy with headlines and figures causing prices to move one way or the other as we countdown [to the Fed’s decision].”
He reckons the Fed will not raise rates on Thursday, and if this proves to be the case, investors should see a rally in precious metal prices.
Until then, however, the markets remain in wait and see mode.
Gold was trading US$3 lower to US$1,105 today.
Elsewhere, silver was trading 0.4% lower to US$14.3 while platinum eked out a US$3 gain to US$958.
Major Movers
Randgold Resources (LON:RRS) down 2p to 3,623p
Fresnillo (LON:FRES) down 6.5p to 585p
Anglo American (LON:AAL) up 14p to 731p