Gold falls sharply on dollar rise on US retail sales data By Reuters

© Reuters. Stock image of gold bars in a chamber of the National Bank of Kazakhstan in Almaty.

For Arundhati Sarkar

Sep 16 (Reuters) – El fell nearly 3% on Thursday, while the la plunged more than 5%, as strong U.S. retail sales data boosted the dollar and supported bets that the The Federal Reserve could accelerate its reduction in asset purchases.

* At 1752 GMT, spot gold fell 2.1% to $ 1,755.75 an ounce after falling to $ 1,744.30, a low in more than a month. Meanwhile, US gold futures lost 2.1% to $ 1,756.70.

* Silver, meanwhile, sank 4.3% to $ 22.79.

* He rose, increasing the cost of buying the bullion for holders of other currencies, following data that showed that retail sales increased driven by school purchases and payments of tax credits per child by the government, which could attenuate expectations of a sharp slowdown in growth.

* The market awaits the Federal Open Market Committee (FOMC) meeting on September 21-22. A growing number of authorities have expressed support for a reduction in central bank asset purchases this year.

* “There are many members in the FOMC who are in favor of starting the stimulus reduction this year and therefore the outlook for gold is not positive,” said Quantitative Commodity Research analyst Peter Fertig, adding that Recent data showing US inflation slowing last month is unlikely to lead to a postponement of the adjustment.

* Less stimulus from the central bank tends to raise bond yields, which increases the opportunity cost of owning non-interest bearing gold. It also helps boost the dollar, which weighs even more on the bullion.

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* But “the waning stimulus will not be favorable to equities and gold could be one of the beneficiaries of the money coming out of the stock market,” said Vincent Tie, sales manager for Singapore trader Silver Bullion.

* Among other precious metals, he was up 1.5% to $ 2,032.50 and he was down 1.7% to $ 930.52.

(Reported by Nakul Iyer and Eileen Soreng in Bengaluru; Edited in Spanish by Ricardo Figueroa and Javier Leira)

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