(Reuters) – On Tuesday, gold is slightly lower, soaring below a high hit of three-week the prior session, as investors are awaiting the U.S. retail sales data, whereas a fresh increase in Indian import tax topped sentiment.
Traders said that volumes continued soft during the summer holidays.
Spot gold declined 0.2% to reach $1,333.26 an ounce by 0954 GMT, lower from a three-week high hit of $1,343.06 on Monday.
The London A.M. fix is $1,334.00.
The yellow metal increased nearly 2% in the prior session on marks of firm Chinese consumption and as the SPDR Gold Trust, world’s largest exchange-traded fund (ETF), posted its first increase in two months on Friday. The holdings of the fund were not changed on Monday.
The eight top gold ETFs tracked by Reuters have showed outflows of around $26 billion so far this year, bringing down gold prices.
Afshin Nabavi, MKS SA head of trading, said “We should be trading between $1,300 and $1,350 until September when we have more people around and more macro-economic events,” also added “There is a chance we can see more upside simply because the numbers out of the States have started to look a little bit shakier lately … any disappointing number today could weigh the dollar down and lift gold.”
The dollar increased 0.2%, spreading gains keen on a third day in hope that U.S. data will point to the Fed tapering its $85 billion of monthly bond purchases soon. The upcoming view will be the retail sales report at 1230 GMT, which mostly expected to be strong.
European shares as well increased after investor sentiment and German analyst moved up more than expected in August.
Gold prices have been also hit by the news of the Indian federal government rose import duty on refined gold bars for the third time within eight months by 10% from 8% and on silver by 10% from 6%.