Gold prices drifted lower on Tuesday, extending losses from the previous session as bond yields rose ahead of the Federal Reserve’s July meeting minutes, due out on Wednesday.
The Fed’s minutes will likely provide clues about the central bank’s future interest rate moves.
Weak economic data from China and the U.S. and worries about slowing global economy pushed up the demand for the dollar. However, after climbing higher in the European session, the dollar pared gains.
The dollar index, which rose to 106.94, dropped to 106.32 before recovering to 106.56, slightly above the previous close.
Gold futures for December ended lower by $8.40 or about 0.5% at $1,789.70 an ounce.
Silver futures for September ended down by $0.187 at $20.085 an ounce, while Copper futures for September settled at $3.6245 per pound, gaining $0.0070.
A report from the Federal Reserve showing U.S. industrial production increased by 0.6% in July following a revised unchanged reading in June. Economists had expected industrial production to rise by 0.3% compared to the 0.2% dip originally reported for the previous month.
Data from the Commerce Department showed housing starts plunged by 9.6% to an annual rate of 1.446 million in July after slumping by 2.4% to a rate of 1.559 million in June. Economists had expected housing starts to decline by 1.2% to a rate of 1.540 million.
Building permits, an indicator of future housing demand, also fell by 1.3% to an annual rate of 1.674 million after inching up by 0.1% to a revised rate of 1.696 million in June. Economists had expected building permits to tumble by 2.1% to an annual rate of 1.650 million from the 1.685 million originally reported for the previous month.