Gold Dips in Quiet Session (Update 1)

Updated from 11:06 a.m. EDT with settlement prices

NEW YORK (TheStreet) -- Gold prices edged lower Monday as traders digested a poor U.S. retail sales report and signs the global economy could be ripe for a slowdown.

Gold for August delivery settled down 40 cents at $1591.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1594.60 and as low as $1577.20 an ounce, while the spot price was rising $2.40, according to Kitco's gold index.

"Retail sales was a lot weaker than expected so it's disappointing economic news ... [gold] exploded on it," said Phil Streible, senior commodities broker at RJO Futures. "Market participants thought that retail sales would actually be pretty decent because of weakening gasoline prices, they would take that money and apply it into other sectors."

Silver prices for September delivery were falling about 5 cents to $27.32 an ounce, while the U.S. dollar index was up 0.26% at $83.06.

Streible was expecting a quiet session Monday with investors likely looking ahead to the appearance of Federal Reserve Chairman Ben Bernanke, who is slated to give his semi-annual testimony about monetary policy before Congress over the course of Tuesday and Wednesday. Once again, traders will be keen to hear hints about the central bank's attitude about providing additional stimulus for the markets.

Last week's Fed minutes revealed mixed sentiment from central bankers about the possibility of so-called QE3 -- a sign that easing would be unlikely in the immediate term.

Gold traders are also focused on Spain's Treasury auction on Tuesday. The country is looking to sell between 2.5 billion and 3.5 billion euros worth of 12-month and 18-month notes.

Should the auction be well received, Streible said he thinks the dollar index may back off aggressively -- underneath the euro -- which may give gold a boost from the weakening dollar.

Gold mining stocks were mostly lower Monday. Newmont Mining (NEM) was dipping to $45.50, down 66 cents, or 1.4%, while Agnico-Eagle Mines (AEM) was at $37.07, down 63 cents, or 1.7%. Shares of Yamana Gold (AUY) was gaining to $15.06, up 20 cents, or 1.4%

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