Gold closed lower on Tuesday despite a weaker dollar as investors moved to add risk following unexpectedly robust US economic data.

Gold for August delivery closed US$10.00 to US$1,923.80 per ounce.

The rise comes as the United States on Tuesday reported May durable-goods orders rose 1.7%, while the consensus forecast called for a 0.9% drop according to Marketwatch. The better than expected performance may firm expectations the Federal Reserve will follow through on forecasts for another 50 basis-point rise in US interest rates before year end. As well, consumer confidence is sharply higher this month, rising to 109.7 from 102.5 in May and ahead of expectations for a reading of 104.

The dollar weakened as investors move to add risk following the data, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.23 points to 102.46.

Treasury yields rose, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.766%, up 9.8 basis points, while the yield on the 10-year note was up 4.08 basis points to 3.764%.

Source: MTN newswires