Gold backs off month high as dollar gains ground

2022-08-12 11:23:03 GMT (Economies.com)
Gold backs off month high as dollar gains ground

Gold futures tilted lower in Asian trade off late June highs as the dollar index climbed off June 29 lows, following earlier European data and ahead of US consumer sentiment data.

 

As of 09:52 GMT, gold futures due in December fell 0.14% to $1,802 an ounce, while the dollar index rose 0.18% to 105.35. 

 

Earlier French data showed consumer prices rose 0.3% in July as expected m/m, and 6.1% y/y as expected as well. 

 

Italian trade deficit rose to 2.166 billion euros from 62 million euros in May, while analysts expected a surplus of 350 million euros.

 

Euro zone industrial output rose 0.7%, slowing down from 2.1% in May.

 

From the US, the UoM consumer sentiment survey is expected up to 52.5 in August from 51.5 in July. 

 

Fed Chicago President Charles Evans said the labor sector is very lively and strong and lauded employment numbers, and expressed strong optimism for the US economy's growth in the second half of the year.

 

Evans expects growth between 1.2% and 2% next year, with the Fed supposed to hike rates six month before that, expecting final interest rates by 3.5% by year's end, and could reach 4% later.

 

Other Fed members expressed confidence in the economy as inflation numbers continue to taper off and moderate, however the Fed remains on a path to tighten monetary policies and hiked rates to maintain a lid on prices.

 

Analysts reduced bets on a 0.75% rate hike by the Federal Reserve at the next policy meeting, in turn hurting the greenback's position, however an overall directions towards policy tightening maintains a lid on gold prices. 

 

China continues to face waves of Covid 19 in several major cities, with latest World Health Organization data showing 585.09 million infections worldwide, with the death toll mounting to 6.422 million.

 
 
 
  Symbol Last Change Chg.%
0.9820
0.0164
1.7032%
1.1123
0.0303
2.8003%
18.816
-0.042
0.223%
81.609
2.315
2.920%
88.86
-0.46
0.52%
1660.490
15.130
0.920%
 
 
Live Forex Updates