Gold holds above $1,500, shrugs off dollar's rise for first session in 4

2019-08-13 10:07:17 GMT (Economies.com)
Gold holds above $1,500, shrugs off dollar's rise for first session in 4

Gold futures fluctuated higher in the Asian market to hold near 6-year high, shrugging off dollar's rebound, on the threshold of economic data releases today by the US economy, amid concerns about escalation of the US-China trade war and Hong Kong's protests and strikes.

 

As of 03:45 GMT, gold futures (December delivery) rose by 0.28% to $1,526.60 an ounce, from the opening of $1,522.30, opening on a bullish gap after closing yesterday at $1,517.20, while dollar rose by 0.13% to 97.61 points from the opening of 97.48.

 

Investors are anticipating the release of the US CPI reading which is expected to grow by 0.3% vs. 0.1% in June, with the core CPI reading which may grow by 0.2% vs. 0.3%. While the annual CPI reading may grow by 1.7% vs. 1.6%, and the annual core reading may reflect a growth by 2.1%.

 

Markets are still pricing Hong Kong's strikes and protests, which led to the cancellation of more than 150 flights, as the protesters reached 15,000 people which shows an escalation of the pro-democracy protests that started in June.

 

Last weekend, President Trump said the situation in his country is good and that the trade talks with China are still going on, while no agreement has been reached yet, saying Beijing has demands and Washington is not ready to approve them, adding that he wants the the US rates to be cut by 1% to support the economy.

 

Trump added that he's not happy with dollar's strength, which came after Chinese yuan sharp drop below the 7 yuan per dollar mark for first in more than a decade, and the US designated China as currency manipulator to gain competitive advantages in the midst of the trade war.

 

A Chinese trade delegation is scheduled to visit the United States next month for a new round of trade talks, the visit (which has yet to be confirmed by China) will coincide with Trump's tariffs increase decision taking effect, which is an increase by 10% on Chinese imports $300 billion.

 
 
 
  Symbol Last Change Chg.%
1.1133
0.0071
0.6450%
1.3200
0.0063
0.4773%
Tadawul
8133.72
67.30
0.83%
16.860
0.288
1.738%
58.796
-0.314
0.531%
63.72
-0.62
0.96%
1474.830
14.985
1.026%
 
 
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