(Reuters) – Gold futures price was lower on Tuesday by $2.70 at $1,335.10, a few dollars away from 4-months high seen in the previous session. Investors wait U.S. economic data due to be released later today for clues on U.S. economy recovery pace.
Gold price in the spot market was down to $1,334.80 by 0.2% around 12:38 Pm GMT. The US dollar (USD) value was down by 0.1% against a basket of currencies. Analysts said the slight decrease in gold price on profit taking.
SPDR Gold Trust holdings, one of the largest gold exchange-traded funds (ETFs), increased to 801.61 tonnes. On the other hand, the International Monetary Fund (IMF) reported a decrease in Turkey’s gold holding by 31.171 tonnes, totaling 488.578 tonnes in January.
Gold premiums in Shanghai Gold Exchange (SGE) were down dramatically from $11 last week to somewhere between $0.50 and $1 per ounce on Tuesday. Hong Kong’s gold exports to China fell from December to January by 5.4% to reach 89.745 tonnes from 94.847 tonnes.
Analysts said that gold fundamentals remain the same, as the U.S. data are the main drive of gold price movement on the short-term basis. Unrest and violence all over the world increase safe-haven demand on gold. Physical buying is shifting from the West to the East. Soft or weak data are a bullish indicator for gold.
Investors keep a close eye on major economic news. Most notably the U.S. Consumer Confidence Index due to release on Tuesday. On Friday, Janet Yellen, U.S. Federal Reserve President, will give her semi-annual testimony about U.S. monetary policy in front of Senate Banking Committee.