Forex
Gold Prices Reach Near Two-Month High as Weaker US Retail Data Hits Dollar
The price of gold rose to near a two-month high of US$4,400 an ounce on August 17 as weaker US retail sales data weighed on the US dollar. This made bullion cheaper for most buyers.
Latest US data showed declines in both consumer sentiment and retail sales, easing fears of an imminent rate hike that is typically a headwind for non-yielding bullion. A gauge of the US dollar was down 0.2 per cent on August 17, making gold priced in the currency cheaper.
The yield curve, which refers to the gap between long-term and short-term US Treasury yields, was also steepening. However, volatility continued to shroud the global energy supply outlook, showing that the risk of monetary tightening has not gone away.