"Prices are off slightly as the prospects of a sustainable economic recovery improve," according to a report by Marc Elliott, an analyst at Fairfax IS. "Every positive economic figure emerging from the U.S. increases the prospect of interest rate rises."
At 8:15 on Tuesday morning, gold futures were down 0.49 percent, a $6.90 slide to $1,414.40 per troy ounce. Silver futures also were down, decreasing 1.14 percent. The 0.423 cent reduction brought silver futures to $36.665 per troy ounce.
"The more positive signs from the U.S. economy mean that the expectations of rate rises are starting to come back to people's attention," Darren Heathcote, head of trading at Investec Bank of Australia, told Bloomberg. He said higher rates "will inevitably take some of the shine off gold, decreasing its attractiveness to investors."
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