Gold edges lower for first session in ten, dollar near two-year nadir

Gold futures tilted lower in Asian trade off record highs while the dollar index climbed from May 2018 lows, ahead of US GDP data today. 

As of 04:23 GMT, gold futures due in December fell 0.22% to $1,982 an ounce, while the dollar index rose 0.09% to 93.40. 

From the US, GDP is expected to have shrunk 34.5% in the second quarter of the year, compared to a 5% drop in the first quarter. 

Unemployment claims for the week ending July 25 are expected up 24 thousand to 1.44 million, while continuing claims for the week ending July 18 are estimated up 3 thousand to 16.2 million. 

The Federal Reserve just voted to maintain rates at near zero while asserting it's ready to use all available tools to bolster the economy against the pandemic.

Gold's recent spike came as haven demand rallied for the precious metal as US-China tensions mounted and Covid 19 infections picked up in Europe, especially Spain. 

The gains also came as the US dollar fell due to the US 10-year Treasury bonds yield's drop, and expectations for further quantitative easing by the Federal Reserve to ease the coronavirus impact on the economy.

Recent data showed global gold funds reported an increase of 2.7% in cash flows, adding 104 metric tonnes of gold, or about $5.6 billion in June, with total increases in the first half of 2020 reaching $39.5 billion, a record high on haven demand.