Gold Ends Lower On Global Cues

(RTTNews) - Gold futures ended lower for a third session on Tuesday, tracking declining global equity markets with investors looking for direction, despite the dollar trending lower against a basket of major currencies.

Some weak economic data from the eurozone appear to be supporting the yellow metal, but recent upbeat U.S. economic data indicating possibilities of a rate hike by the Federal Reserve sometime soon, offset any gains made by gold.

Meanwhile, Minneapolis Federal Reserve Bank President Narayana Kocherlakota, speaking on the monetary policy on Tuesday, downplayed recent higher readings on inflation. Kocherlakota indicated the price level to likely stay below the Fed's target for some years, maybe even until 2018.

Gold for August delivery, the most actively traded contract, dipped $0.50 to close at $1,316.50 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

Gold for August delivery scaled an intraday high of $1,325.70 and a low of $1,314.30 an ounce.

On Monday, gold futures ended down, its lowest in more than a week, extending losses from the previous session in the aftermath of Thursday's robust U.S. jobs report.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged up to 798.19 tons on Tuesday from its previous close of 796.39 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.17 on Tuesday, down from its previous close of 80.22 late Monday in North American trade. The dollar scaled a high of 80.30 intraday and a low of 80.14.

The euro traded higher against the dollar at $1.3612 on Tuesday, as compared to its previous close of $1.3605 late Monday in North American trade. The euro scaled a high of $1.3620 intraday and a low of $1.3590.

In economic news from Europe, a report from German Statistical Office DESTATIS showed German manufacturing turnover to have slipped 1.9 percent month-over-month in May following the revised 0.5 percent increase in April.

Meanwhile, U.K. industrial production was down unexpectedly in May, declining 0.7 percent month-on-month, reversing a 0.3 percent rise in April, the Office for National Statistics said. Economists had forecast a 0.3 percent rise.

Eurozone investor sentiment recovered in July, with the Sentix indicator rising to 10.1 from June's 8.5, after weakening in the previous two months. Economists had forecast a lower score of 7.7. The economic expectations index climbed to 18.3 from 17 in the previous month and equaled May's score. The index rose for the first time in five months.

The Organization for Economic Cooperation and Development said the leading index continues to show stable growth momentum in the region. The composite leading indicators remained unchanged at 100.6 in May. The CLI for the United States continue to indicate stable growth momentum with the index rising to 100.6 in May from 100.5 in April. In the euro area, the CLI for May came in at 101.1, the same score as seen in April.

Meanwhile, International Monetary Fund Managing Director Christine Lagarde indicated a slight reduction to the institution's global growth outlook as investment remains subdued. The global economic outlook is to be released later this month.