· Gold slipped on Tuesday from the previous day's four-month high, reflecting losses across the commodities complex as the U.S. dollar clawed back some losses the day after hitting a three-year low against a basket of currencies.
Gold's move lower came after four consecutive days of gains due to the greenback's retreat, which made dollar-priced gold cheaper for holders of other currencies.
· Spot gold was down 0.2 percent at $1,337.04 an ounce by 1:35 p.m. EST (1835 GMT), off Monday's $1,344.44 peak. U.S. gold futures for February delivery settled up $2.20, or 0.2 percent, at $1,337.10 per ounce.
· The gold market is finding little traction Tuesday despite weaker than expected sentiment in the New York region's manufacturing sector, according to the latest data from the New York Federal Reserve,
Tuesday, in its Empire State Manufacturing Survey, the regional central bank said that its general business conditions index rose to a reading of 17.7 in January, down slightly from 18 in December.
However, consensus forecasts were calling for a rise to 18.5. Many economists were expecting to see a boost in sentiment in reaction to the government cutting corporate taxes to 21%.
· Gold prices were already down ahead of the data, due to technical selling after the market hit a four-month high during quiet trading Monday. The market is seeing little reaction to the numbers; February gold futures last traded at $1,334.90 an ounce, unchanged on the day.
· "The gold market has gained a lot of momentum over the last few sessions to the upside, so it’s understandable that it’s taking a breather on profit-taking,” said Phillip Streible, senior commodities strategist at RJO Futures in Chicago.
· Gold remained relatively firm after three 2017 U.S. interest rate hikes, but further rate hikes could pressure gold prices by raising the opportunity cost of non-yielding bullion.
"We see a trading range of $1,225-$1,430 for gold this year, with an average price of $1,290," INTL FCStone said in a note.
· Palladium, which hit a record high of $1,138 an ounce on Monday, was down 3 percent at $1,091.97 an ounce. It has had a sustained rally as high demand in the auto industry fueled supply concerns, sending Nymex palladium futures net long positions to record highs.
· Silver was down 1 percent at $17.17 an ounce, off the previous day's three-month high of $17.42. Platinum was up 0.2 percent at $998, touching a Monday peak of $1,001.40, its strongest since Sept. 11.
Reference: Reuters, Kitco
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