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Gold keeps gaining ground on strong data
On Tuesday, gold kept gaining ground in Asia just a day after China posted strong second quarter GDP, retail sales and industrial output figures for June. Traders also focused on industrial metal demand for housing as well as property development.
August delivery gold futures rallied 0.27%, trading at $1,236.07 in New York, while copper future were intact, sticking to $2.726 a pound.
China posted second quarter GDP surge with a revenue of 1.7%, which matched hopes as well as a year-on-year leap of 6.9%, which came in moderately higher than the forecast 6.8%. Simultaneously, China disclosed that industrial output soared 7.6% from last year in June, while retail sales added 11% in June.
The currency pair AUD/USD hit 0.7823, sliding 0.09%, with China a key trading partner for metal, energy and food commodities. Meanwhile, USD/JPY showed 112.44, declining 0.09% too.
A weaker greenback has helped to shore up sentiment as well as gold prices. Traders will currently focus on Thursday and also a gathering of the ECB for new clues on when the key bank will give up its ultra-easy policy.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.