Gold prices plunged to near 19-month lows on Wednesday, as the U.S. dollar held firm amid persisting worries about Turkey’s financial turmoil and its likely impact on global economic growth.
After rising to 96.87, the dollar index retreated and was up just marginally at 96.59, as traders took positions in safe haven yen, but the yellow metal continued to struggle for support.
Gold futures for December ended down $15.70, or 1.3%, at $1,885 an ounce, the lowest level since early January 2017.
On Tuesday, gold futures ended up $1.80, or 0.2%, at $1,200.70 an ounce, snapping a three-session losing streak.
Silver futures for September were down $0.598, or 3.97%, at $14.455 an ounce. Copper futures declined to $2.578 per pound, losing $0.104, or 3.88%.
Data released by the Federal Reserve showed a smaller than expected increase in industrial production in the month of July. The Fed said industrial production inched up by 0.1% in the month after jumping by an upwardly revised 1.0% in June. Economists had expected production to rise by 0.3 percent.
A report from the Commerce Department showed U.S. retail sales climbed by a more than expected 0.5% in July, compared to economist estimates for a 0.1% uptick. However, the report also showed the increase in retail sales in June was downwardly revised to 0.2% from the 0.5% previously reported.
Meanwhile, homebuilder confidence deteriorated a bit in August, according to a report from the National Association of Home Builders. The report said the NAHB/Wells Fargo Housing Market Index edged down to 67 in August from 68 in June, matching economist estimates.