by Christopher Freeburn | August 13, 2013 5:00 pm
A strengthening U.S. dollar and worries over the timing of the Federal Reserve’s move to reduce its monthly bond-buying sent gold lower in Tuesday trading.
Positive news on U.S. retail sales for July suggested an improving U.S. economy, adding fuel to investor expectations that the Fed will begin tapering economic stimulus sooner than previously anticipated. Fed officials have signaled that the central bank will begin applying the brakes to its stimulus program if the economy continued to show signs of growth.
Gold futures for December delivery fell 1% to $1,320.50 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,341 and as low as $1,317.80. Gold bullion closed in London at $1,324, according to BullionVault.
Silver futures for December delivery was flat at $21.40 per ounce. Tuesday’s high for silver was $21.79, while the low was $21.18.
Gold and silver funds mostly declined in Tuesday trading.
Gold and silver mining ETFs were mixed during the day.
Gold mining shares sank on Tuesday.
Silver mining shares retreated during the day.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.
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