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  • The US benchmark Treasury yields rose to 3.056%, the highest since summer of 2011 supporting the US Dollar across the board.
  • The headline and core US retail sales for April came in below forecast at 0.3% m/m versus 0.4% expected by analysts while the control group matched analysts’ consensus at 0.4% m/m.
  • Gold has lost about $10 since the US-data release.  

Gold is trading at around $1297.50 a troy ounce down 1.2% on Tuesday as the US benchmark Treasury yields jumped to 3.056%, the highest since summer of 2011 in support of the US Dollar.

Gold spike about $10  to the downside on the release as trader saw the US Treasury yields development. The yellow metal is usually inversely correlated to US Dollar that has been supported by rising yields.

Earlier in the US session, the core US retail sales for April (ex Autos) came in below forecast  rising 0.3% m/m versus 0.4% expected by analysts while the control group of the retail sales that is included in the GDP report  matched analysts’ consensus at 0.4% m/m increase in April.

Looking back, in Asia, gold prices remained subdued below the 1,315 level and declined steadily in the first part of the European session and reached 1,306 before the release of the US Retail Sales data at 12:30 GMT.

On the broader picture, gold prices have been losing ground those last days also on the back of optimism related to the second round of trade talks between the US and China which take place this Sunday.