By Sarah Turner, MarketWatch
HONG KONG (MarketWatch) — Gold futures slipped on Tuesday as investors moved into the U.S. dollar after Chinese data showed a slowdown in trade in June.
Gold for August delivery GCQ2 -0.20% fell $2.90 to $1,586.30 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
The move for gold coincided with some strength for the U.S. dollar. The ICE dollar index DXY +0.10% reached 83.280 in Asian trading hours, up from 83.165 in late North American trading on Monday.
“A defensive mood dominated overnight amid weaker Chinese import growth and a lackluster Eurogroup statement,” said RBC Capital Markets strategists.
China released data Tuesday that showed import and export growth both slowed in June, while the Eurogroup put out a statement giving more details on plans to support Spain’s banking sector and allowing Spain more time to reduce its budget deficit.
Gold investors are likely waiting for the U.S. Federal Reserve’s interest-rate setting committee on Wednesday to release the minutes of its latest meeting, said HSBC gold analysts.
“With little in the way of U.S. economic releases ahead of the Fed minutes, bullion prices may be subject to even modest changes in investor sentiment regarding the tone and direction of the Fed minutes,” they said.
“We believe a shift towards further monetary easing has the potential to send prices back over $1,600 an ounce,” the analysts said.
Sarah Turner is MarketWatch's bureau chief in Sydney.
