Gold Dips In Asia As China Retail, Industrial Data Weaker Than Seen

Investing.com – Gold edged weaker in Asia on Tuesday with sentiment mixed after weaker that expected retail sales and industrial output in China.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 0.13% to $1277.26 a troy ounce.

In China, fixed-asset investment gained 7.3%, a tad weaker than the 7.4% increase seen in October on year, along with industrial production, which gained 6.2%, missing the 6.3% rise seen and retail sales up 10%, compared with a 10.4% gain expected

Overnight, gold prices rose on Monday amid an uptick in safe-haven demand as investor uncertainty over the outcome of tax reform continued while a slump in sterling boosted the dollar which capped gains in the precious metal.

The House of Representatives is expected to vote this week on a major tax reform bill amid uncertainty over the outcome of the bill after the head of the House of Represents’ tax-writing committee said on Sunday he would not accept elimination of a federal deduction for state and local taxes.

With a 52-seat Senate majority, Republicans can only afford to lose two GOP senators – as Democrats are widely expected to vote no – , but Vice President Pence would have to break a tie.

Uncertainty over the progress of the Republican tax plan has weighed on the dollar, helping gold prices snap its three-week losing streak on Friday but traders expect the precious metal to make its next significant move higher or lower when the Fed members meet in December.

Also lifting sentiment on safe-haven demand were reports that British Prime Minister Theresa’s Conservative party had agreed to sign a letter of no-confidence in her as some members doubted Mrs. May ability to lead the UK into a successful Brexit.

Rising UK political uncertainty pressured sterling to one-week lows and supported a move higher in the dollar, capping gains in the .

Gold prices are sensitive to moves higher in the U.S. dollar – A higher dollar makes gold more expensive for holders of foreign currency, thus, reduces demand.

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