(Adds comments, details; Updates prices)
* Palladium slumps over 3% to a three-week low of $1,510/oz
* Silver hits more than four month high of $15.69/oz
* Platinum scales two-month peak of $850.62/oz
* GRAPHIC-2019 asset returns:
By K. Sathya Narayanan
July 16 (Reuters) - Gold prices fell on Tuesday after
better-than-expected U.S. retail sales data lowered expectations of an
aggressive interest rate cut by the U.S. Federal Reserve, boosting the dollar.
Spot gold inched down 0.4% to $1,408.74 per ounce as of 1:36
p.m. EDT (1736 GMT). U.S. gold futures settled about 0.2% lower at $1,411.20.
"The (gold) market is more reliant on the macro factors to be
driven higher. If we continue to see stronger data like the retail
numbers, it presents a headwind for the market," said Suki
Cooper, precious metals analyst at Standard Chartered Bank.
"The key event the market is tracking is the July FOMC
meeting and the Fed rate cut expectations, and we have seen that the
expectations have declined a little bit."
The U.S Commerce Department said retail sales rose 0.4% last month
as households stepped up purchases of motor vehicles and a variety of
The dollar rose 0.5% against major rivals on the upbeat U.S.
data, making greenback-denominated assets costlier for investors
holding other currencies.
"We've seen a return to big-news-is-bad-news scenario whereby
a strong piece of data, which could discourage the U.S. Fed from
cutting interest rates, is having big implications on the
market," OANDA senior market analyst Craig Erlam said.
Meanwhile, spot palladium fell over 3% to touch its lowest in
three weeks at $1,510 per ounce. The metal was last down about 3.3% at
$1,516.43 per ounce.
U.S. President Donald Trump said Washington still has a long way
to go to conclude a trade deal with China but could impose tariffs if
Trump earlier said that slowing economic growth in the world's
second largest economy showed U.S. tariffs were having "a major
effect" and Washington could add pressure.
"(The drop in prices) are due to a combination of weak
economic growth in China along with a technically driven selloff after
reaching a strong level of resistance," David Meger, director of
metals trading at High Ridge Futures said adding, Trump's comments
were an "added negative."
The auto-catalyst metal briefly surpassed a key psychological
level of $1,600 on Thursday, a level last touched in March. The
failure to sustain above the recent high has caused a bout of profit
taking, Meger said.
Among other precious metals, silver rose 1.5% to $15.62 per
ounce, after touching its highest since Feb. 28 at $15.69 earlier in
Platinum was up 0.2% at $840.98, after touching its highest
since May 15 at $850.62.
(Reporting by K. Sathya Narayanan and Karthika Suresh Namboothiri in
Bengaluru; editing by Marguerita Choy and Chizu Nomiyama)
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