Gold heads for weekly dip as strong dollar, US data weighs
[BENGALURU] Gold was flat in early Asian trade on Friday (Jul 18), heading for a weekly fall, weighed down by an overall stronger US dollar and solid US economic data.
Spot gold was steady at US$3,339.22 per ounce, as at 0038 GMT. US gold futures were flat at US$3,344.70. Bullion is down 0.5 per cent this week.
The US dollar index edged 0.3 per cent lower against its rivals on the day, but was heading for its second straight week of gains, making greenback-priced bullion more expensive for other currency holders.
Data showed on Thursday that US retail sales rose more than expected in June, advancing 0.6 per cent last month after an unrevised 0.9 per cent drop in May.
US initial jobless claims also were better than expected, dropping 7,000 to a seasonally adjusted 221,000 for the week ended July 12, data showed. Economists polled by Reuters had forecast 235,000 claims for the latest week.
The strong economic readings showed the world’s largest economy remained on a stable footing, supporting the Federal Reserve’s hesitance in resuming monetary policy easing.
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However, Fed governor Christopher Waller said he continues to believe the US central bank should cut interest rates at the end of this month amid mounting risks to the economy.
Gold, often considered a safe haven during times of economic uncertainty, tends to do well in a low-interest-rate environment.
Meanwhile, investors closely watched trade negotiations as US President Donald Trump broadened his tariff war.
Gold exports from Switzerland jumped 44 per cent month on month in June to the highest level since March as bullion flew back to the vaults in the UK from the US via Swiss refineries, Swiss customs data showed.
Spot silver edged 0.1 per cent higher to US$38.13 per ounce. Platinum rose 0.5 per cent to US$1,465.20 and palladium gained 0.5 per cent to US$1,286. REUTERS
