Gold Edges Higher Amid Lower Yields and Soft US Economic Data
Spot gold prices edged higher on Tuesday as lower Treasury yields and softer U.S. economic data supported the metal, while spot silver slipped on profit-taking after its recent advance.
The Conference Board's consumer confidence index fell to 89.4 in August from 90.2 in July, while new home sales declined 10.5% in July, surpassing expectations for a smaller contraction.
Market positioning remains caught between softer growth data and inflation risk, with rate futures still indicating a September hold as the base case but keeping a material hike tail in place ahead of July's PCE inflation reading and Fed Chair Kevin Warsh's Jackson Hole speech.
Ole Hansen, head of commodity strategy at Saxo, attributed gold's weakness to 'primarily driven by profit-taking.'