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Gold prices little changed as demand weakens

Gold prices little changed as demand weakens

Gold prices were little changed Tuesday as weak investment demand hindered the precious metal from moving higher. Grains and oil fell.
Gold for June delivery gained $2.10 to settle at $904.30 an ounce on the New York Mercantile Exchange, after trading within a range of $900.90 to $916.70 during the session.
A relatively stable stock market and data showing weak import demand for gold in Turkey hurt prices on Tuesday, said Tom Pawlicki, commodities analyst with MF Global Research in Chicago.
Stocks declined modestly following a big run-up Monday that sent the Standard & Poor's 500 index into the black for the year and the Dow Jones industrials up more than 200 points.
There were expectations that the stock market would sell off more sharply after Monday's jump, Pawlicki said, which is why gold prices were higher in early trading. But after the market remained fairly stable during gold's trading session, prices retreated.
Gold prices have been largely range-bound in recent weeks, daunted by a two-month rally on Wall Street that has driven the major indexes up more than 25 percent since March 9.
Increasingly upbeat data has signaled to investors that the economy has begun to heal. That optimism has deflected demand for safe-haven assets like gold.
Yet, as the economy improves, gold prices could benefit, which is why prices have not sold off more sharply. Investors believe that down the road, inflationary pressures could resurface as the economy picks up and prices for goods and services begin to correct. Gold is used as a hedge against inflation.
On Tuesday, the dollar was mixed against other major currencies.
Other metals were also mixed. July silver rose 30.7 cents to $13.42 an ounce, while July copper futures fell 6.15 cents to $2.0825 a pound.
Oil prices gave back some of Monday's big gains.
Light, sweet crude for June delivery fell 63 cents to settle at $53.84 a barrel on the New York Mercantile Exchange after jumping $1.27 to $54.47 on Monday _ the highest close since Nov. 26.
Prices have moved higher in recent weeks, strengthened by hints of an economic recovery.
In other Nymex trading, gasoline for June delivery fell 1.4 cents to settle at $1.5722, while heating oil fell less than a penny to settle at $1.4262 a gallon.
Grain prices held steady on the Chicago Board of Trade.
July wheat futures rose 2.5 cents to $5.5350 a bushel, while corn for July delivery shed 0.25 cent to $4.0525 a bushel.
July soybeans slipped 2.5 cents to $11.01 a bushel.


Updated : 2021-08-05 21:26 GMT+08:00