Gold prices edges down in Asia, China data eyed
Gold prices fell in early Asia on Tuesday ahead of data sets on retail sales and industrial output in China with the Fed review of rates later this week the key event.
Gold for April delivery on the Comex division of the New York Mercantile Exchange fell 0.13% to $1,201.50 a troy ounce. Copper futures eased 0.08% to $2.626 a pound.
In Australia, NAB reports business confidence for February with a previous reading of plus-10, along with the NAB business survey with a previous reading of plus-16.
China then reports fixed asset investment for January with an 8.2% gain expected year-on-year, industrial production seen up 6.2% and retail sales with an expected 10.5% increase.
Overnight, gold prices traded slightly higher on Monday, as political jitters from Europe supported demand for the yellow-metal while the possibility of a U.S. rate hike later this week capped further gains.
Gold held firm in early morning trade on Monday, after investors braced for a fresh round of political uncertainty from Europe ahead of the Dutch parliamentary election on Wednesday. Although the risk of a Eurosceptic party emerging as victorious is slim, the Dutch election represents a high volatile scenario as it comes ahead of the French elections.
Upside momentum in the yellow-metal remained capped as political uncertainty continued to play second fiddle to expectations that the Federal Reserve will hike interest rates on Wednesday following the conclusion of its two-day meeting on March 14-15.
According to Investing.com’s Fed rate monitor tool, 93% of traders expect a rate hike in March.
Gold is sensitive to moves in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.