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2019.03.2615:11:00UTC+00Gold Futures Settle Lower

Gold prices drifted lower on Tuesday as traders switched over to riskier assets after fears about U.S. recession faded following bond yields coming off 15-month lows.

Global equities moved higher and the U.S. dollar held steady as well, rendering the yellow metal weak almost right through the session.

Gold futures for April ended down $7.60, or 0.6%, at $1,315.00 an ounce.

On Monday, gold futures for April ended up $10.30, or 0.8%, at $1,322.60 an ounce, the highest settlement since February 26, 2019.

Silver futures for May ended down $0.138, at $15.429 an ounce, while copper futures for May ended at $2.8540 per pound, gaining $0.0025 for the session.

U.S. 10-year Treasury yields recovered from 2017 lows hit in the previous session, helping ease fears over a possible U.S. recession.

On Monday, Chicago Federal Reserve Bank President Charles Evans said chances of recession were no more than 25%.

Speaking at a Credit Suisse forum on Asian investment, former U.S. Federal Reserve Chairman Janet Yellen said she does not foresee a recession based on recent moves in the bond market. She said the markets may be indicating the need for a rate cut.

When asked about the yield curve inverting, Yellen said, "I don't see it as a signal of recession," and added that yield curves tend to be more flat than they were in the past, so an inversion may not carry the same significance it once did.

"Yes, growth is slowing, but I don't see it slowing to a level that will cause a recession," she said. "In fact, it might signal that the Fed would at some point need to cut rates."

Meanwhile, in economic news today, a report from the Commerce Department showed housing starts plunged by 8.7% to an annual rate of 1.162 million in February after surging up by 11.7% to a revised rate of 1.273 million in January.

Economists had expected housing starts to dip to a rate of 1.213 million from the 1.230 million originally reported for the previous month.

The Commerce Department said building permits also fell by 1.6% to an annual rate of 1.296 million in February after dipping by 0.7% to a revised rate of 1.1317 million in January.

A separate report from the Conference Board showed an unexpected decrease in consumer confidence in the month of March.

The Conference Board said its consumer confidence index dropped to 124.1 in March after jumping to 131.4 in February. Economists had expected the index to rise to 133.0.

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