Gold dropped on Tuesday amid choppy trading as traders backed away from the safety investment amid hopes the economy can rebound. The metal gave back a portion of yesterday's drop with the decline.
May-stamped gold prices dropped to $892 per ounce, down $3.80 for the session.
President Barack Obama described in detail the five pillars on which he plans to rebuild the U.S. economy Tuesday, pledging that his administration is working to promote regulatory reform, education, health care, clean energy, and financial market stabilization.
In a speech at Georgetown University in Washington, Obama discussed his goals for the administration, although he did not propose any new policies.
The dollar was choppy against other majors on Tuesday, giving back early gains. Gold usually moves opposite the dollar because of the precious metal's hedge value.
The U.S. Labor Department said producer prices dropped 1.2 percent in March, following a revised increase of 0.1 percent in the previous month. Economists had expected no change in producer prices for the month.
Meanwhile, retail sales unexpectedly showed a notable decrease in the month of March, according to a report released by the Commerce Department on Tuesday, although the report also showed an upward revision to February sales.
The report showed that retail sales fell 1.1 percent in March following a revised 0.3 percent increase in February. Economists had expected sales to increase by 0.3 percent compared to the 0.1 percent decrease originally reported for the previous month.
Later, a Commerce Department report showed that business inventories fell by 1.3 percent in February, matching the revised decrease seen in the previous month. Economists had expected inventories to fall by 1.2 percent compared to the 1.1 percent decrease originally reported for January.
June-dated gold ended Monday at $895.80, up $12.50 for the session.
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