Gold prices dipped on Tuesday as the dollar strengthened.
The precious metal was at its highest last week at $1,365.23 per ounce, as geopolitical tensions were heightened over a possible U.S. coalition strike on Syria and further sanctions on Russia.
On Comex, gold futures fell 0.4 percent or $4.90 at $1,345.80 a troy ounce.
The U.S. dollar index which measures the greenback’s strength against a basket of six major currencies gained 0.24 percent to 89.35.
U.S. gold futures for June delivery slipped 0.18 percent to $1,347.10 an ounce.
Dollar Surges on Upbeat Economic Data
The U.S. dollar surged after the release of data showing an upbeat U.S. economic data and stronger equity market.
Data on the Industrial production was positive, strengthened by business equipment and cars with factories increasing output, and was better than forecast.
Housing starts and building permits gained in March, although building of single-family homes declined 3.7 percent. A decline for building permits was at their lowest level last seen in September 2017, which suggested a possible head winds for the real estate market.
Markets Focused on Fed and Earnings
Markets are now focused on scheduled appearances of Federal Reserve policymakers and their speeches who are looking for any hints on future interest rates.
Scheduled to Speak on Tuesday Are:
President of the Federal Reserve Bank of San Francisco, John Williams who is scheduled to make his speech on Tuesday whose stance is on a gradual rate hike.
President of the Federal Reserve of Minneapolis, Neel Kashkari latest comments to journalists where he reiterated that there was no labour shortages and businesses were looking for cheap labour and were unwilling to pay for quality workers.
Randal Quarles who is a member of the Board of Governors of the Federal Reserve and was sworn in as vice chairman for supervision by the Trump administration in 2017 is still yet to make references on monetary policies.
President and CEO of Federal Reserve Bank of Philadelphia, Patrick Harker, Raphael Bostic, CEO of the Federal Reserve Bank of Atlanta and Charles Evans, CEO of Federal Reserve Bank of Chicago are also slated to speak.
Poll Prediction of Hikes
According to polls, market participants put the chance of a rate hike in June at 95 percent with an 85 percent chance of a third rate hike by December.
Silver futures gained 0.5 percent or 8.8 cents at $16.765 a troy ounce.
Platinum added 06 percent at $937.20.
Palladium dipped 1.1 percent to $992.90 an ounce.
Copper futures for May fell 1.3 cents or 0.5 percent to $3.018 a pound.
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