Gold Surges Near $4,400 as Weaker US Data Eases Rate Hike Fears
Gold prices have risen to near $4,400 an ounce as weaker US retail sales data weighed on the dollar. The yellow metal was trading at $4,391.60 per ounce in Singapore, up 0.4% from earlier in the day.
The decline in consumer sentiment and retail sales has eased fears of a rate hike, which is typically a headwind for non-yielding bullion like gold. As a result, gold has extended its two-week advance, with investors showing renewed appetite for the metal.
According to Justin Lin, an analyst at Global X ETFs, 'the recent bounce...has also priced in most of the positive catalysts from the past week, so we may see gold trade relatively flat' until the next clear catalyst. The minutes of the Fed's July policy meeting due on Wednesday will provide some clarity on rate considerations.
Gold's recovery above the $4,000-an-ounce threshold has been driven by increased central bank purchases, particularly from China. With the metal hovering near its 100-day moving average, investors are waiting to see if it can break through the $4,400 level to confirm further positive momentum.