Gold inches down as strong US retail sales lift dollar

By: |
Published: July 17, 2019 8:04:25 AM

Spot gold was down 0.1% at $1,405.26 per ounce, as of 0104 GMT.

Gold prices, US retail sales,  Spot gold, dollar, US gold futuresU.S. gold futures slipped 0.3% to $1,406.90 an ounce. (Reuters)

Gold prices edged lower on Wednesday, but still held above the pyschological $1,400 level, as the dollar gained after robust U.S. retail sales tempered fears of a sharp downturn in the world’s largest economy.


* Spot gold was down 0.1% at $1,405.26 per ounce, as of 0104 GMT.

* U.S. gold futures slipped 0.3% to $1,406.90 an ounce.

* The Commerce Department said retail sales rose 0.4% last month as households stepped up purchases of motor vehicles and a variety of other goods. Economists polled by Reuters had forecast retail sales edging up 0.1% in June.

Also read: Oil prices steady after falling to more than one-week lows

* The dollar was firm on Wednesday after upbeat U.S. data tempered expectations of aggressive policy easing by the Federal Reserve later this month.

* The dollar index against a basket of six major currencies was effectively unchanged at 97.363 after gaining 0.5% the previous day.

* U.S. Treasury yields also rose on strong data, adding to recent evidence that the economy is improving.

* However, Fed Chairman Jerome Powell on Tuesday reiterated pledges to “act as appropriate” to keep the U.S. economy humming, in a speech that did not deviate from expectations that a rate cut is on the way.

* Futures are 100% priced for a cut of 25 basis points, and imply a 27% chance of 50 basis points.

* Meanwhile, President Donald Trump said on Tuesday the United States still has a long way to go to conclude a trade deal with China but could impose tariffs on an additional $325 billion worth of Chinese goods if it needed to do so.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.15% to 799.37 tonnes on Tuesday from 800.54 tonnes on Monday.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Home delivery of petrol, CNG: Govt mulling new retailing model to make all fuels available at one place
2Gold prices jump today as investors seek safe-haven assets amid heightened US-China tensions
3Uttar Pradesh clocks highest ever sugar production