Gold futures settle lower for a second session in a row

Prices pressured by a rise in U.S. equities

Bullion prices ended lower at Comex on Tuesday, 29 April 2014. Gold futures settled lower on Tuesday for a second session in a row, pressured by a rise in U.S. equities as traders assessed data showing a gauge of U.S. consumer confidence for April fell short of forecasts, but the reading for March was revised to its highest level since 2008.

Gold for June delivery fell $2.70, or 0.2%, to settle at $1,296.30 an ounce on the Comex division of the New York Mercantile Exchange. Prices were trading just under $1,299 shortly before the consumer confidence data were released.

The July contract for silver lost 8 cents, falling less than 1% to $19.54 an ounce.

The gold markets, both cash and futures, pushed up from early lower price levels to trade above unchanged in mid-morning dealings. While prices backed off again by the close, safe-haven buying continues to underpin the gold market, amid the ongoing tensions between Russia and Ukraine. The Russia-Ukraine crisis is still at the forefront of the world market place this week.

The Conference Board's Consumer Confidence Index fell to 82.3 in April from an upwardly revised 83.9 (from 82.3) in March. The consensus pegged the Consumer Confidence Index at 83.5. The Present Situation Index fell to 78.3 in April from 82.5 in March. The Expectations Index increased slightly, from 84.8 in March to 84.9 in April. The overall decline in confidence was a little unusual. Typically, confidence levels trend with employment conditions, equity prices, gasoline costs, and media reports. Extremely low layoff levels coupled with a generally rising stock market in April resulted in a large increase in the University of Michigan Consumer Sentiment Index. Those factors were expected, yet they failed to push the Consumer Confidence Index higher.

Separately, The Case-Shiller 20-city Home Price Index for February rose 13.2% while a 13.0% increase had been expected by the consensus. This follows the previous month's increase of 13.2%.

This is a busy week of U.S. economic data, highlighted by the latest FOMC meeting of the Federal Reserve on that began on Tuesday and ends Wednesday, the gross domestic product report on Wednesday and the Labor Department's jobs report on Friday. Other key U.S. reports are scattered throughout the week. On Thursday there is also important manufacturing data coming out of China. Markets will likely be impacted by this week's heavy slate of economic data.

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