Gold Up Over Sluggish Economic Outlook, Lingering Risk Appetite Caps Gains

By Administrator_India

Capital Sands


Gold was up on Monday morning in Asia over signs of a slow economic recovery.

Gold futures inched up by 0.04% to $1,950.60.

U.S. retail sales data released last Friday recorded a lower-than-expected growth of 1.2% month-on-month, compared to the 1.9% expected in forecasts prepared by Japan’s GDP data released earlier in the day also showed a larger than expected contraction of 7.8% quarter-on-quarter between April and June, compared to the 7.6% forecasted, marking the biggest contraction on record. At an annualized rate, Japan’s economy contracted by 27.8%.

However, the U.S. dollar is stabilizing and started the week roughly where it left off last week. The dollar has been lifted by rising U.S. bond yields, helping it climb out of weeks of losses and making gold cheaper for holders of other currencies.

But a possible sign of easing tensions in the U.S.-China trade war may have also increased risk appetite and capped gains for gold. China was reported on Friday to be planning to increase purchases of U.S. oil. The report came out ahead of a trade deal review over the weekend, which was postponed.

However, some analysts remain skeptical, and predict that the pull back in gold back down under $2,000 after a record-setting bull run may not be over.

“Considering the uber-bullish sentiment in gold, along with bloated positioning and speculative activity, the pullback still has room to run,” analysts said.

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Indian embassy in Moscow in touch with developer of Russia's COVID-19 vaccine Sputnik V

By Administrator_India Capital Sands   Days after Russia introduced a COVID-19 vaccine, the Indian embassy in Moscow is reportedly in contact with the medical research institute that has developed Sputnik V vaccine. Sputnik V has been developed by the Gamaleya Research Institute of Epidemiology and Microbiology along with the Russian Direct […]

You May Like

Subscribe US Now

Error: Your Requested widget " newsletterwidget-2" is not in the widget list.
  • [do_widget_area fullwidth-homepage-sidebar]
    • [do_widget_area sidebar-1]
      • [do_widget id="search-2"]
      • [do_widget id="recent-posts-2"]
      • [do_widget id="archives-2"]
      • [do_widget id="categories-2"]
    • [do_widget_area widgets_for_shortcodes]
      • [do_widget id="newsletterwidget-2"]
    • [do_widget_area wp_inactive_widgets]