The price of gold traded slightly higher on the session earlier due to the economic figures in the United States showed a surprisingly weaker numbers. The sixth ballistic missile test led by North Korea has influenced the country’s currency.
The U.S. dollar traded cautiously for the start of the week when the retail sales in the United States failed to reach its target and the missile launch in North Korea has impacted the Japanese yen, which is seen as a safe haven currency.
Figures in the United States showed an unexpected stagnant growth by 0.4 percent in retail sales for the month of April. Meanwhile a depressing report on consumer costs has heightened concerns regarding the bigger economy and the retail sector.
Gold futures in the U.S. were marginally higher by 0.04 percent at $1,228.20 per ounce. Spot gold also rose slightly on the day and to finishes at $1,228.32 per ounce, after rising more than 0.3 percent last Friday.
President of Federal Reserve in Philadelphia Patrick Harker noted that the Fed could possibly adjust its steps which will eventually cut its $4.5 trillion worth of bonds. This depends on the reaction of the financial market. Policy maker in Fed Charles Evans said last Friday that they will likely begin the balance sheet reduction by the end of this year.
Judging by the data from the U.S. Commodity Futures Trading Commission (CFTC), money managers along with hedge funds reduced their net long position to a six-week drop in COMEX gold in the week and concluded last May 9. Environmental watchdogs in the country have created a way for a stalled gold and copper mine in Alaska by agreeing to end the previous lawsuits.