Gold Futures fell sharply on Tuesday on news of positive economic data, boosting the dollar as the 10-year Treasury note climbed to its highest percent in seven years.
Despite the turmoil on the Gaza Strip, the precious metal is taking a back seat to the U.S. Dollar as the go-to safe haven asset. Retail sales climbed .3% in April, which was in-line with economists’ expectations sending June Dollar Index futures to intra-day highs not seen since November 2017. Investors continue to bet on the greenback and the Fed’s hawkish tone with the possibility of introducing a 4th interest rate hike in 2018.
The June Gold Futures contract broke a closely monitored level and is now trading in the 1200’s for the first time since December 2017. Today’s tumble pushed the yellow metal to its low of 2018, breaching the 61.8% Fibonacci retracement level & trading in bearish territory well below its 200 period moving average.
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