Tuesday 10 September 2019

Gold drops for fourth session as improved risk appetite weighs

Gold prices fell for a fourth straight session on Tuesday as risk appetite remained buoyed by better-than-expected economic data, which suggested that the global economy was perhaps not doing as badly as previously assumed.

Spot gold was down 0.6% at $1,490.48 per ounce, as of 0421 GMT, after hitting its lowest since Aug. 13 at $1,486 earlier in the session.

Bullion prices have shed nearly 5% since hitting a more than 6-year peak of $1,557 on Sept. 4.

U.S. gold futures fell 0.8% to $1,498.50 per ounce.

Data released earlier in the day showed China's August consumer price index (CPI) rose 2.8% year-on-year, above expectations for 2.6%, while the producer price index (PPI), a key barometer of corporate profitability, contracted less than expected.

"A lot has already been factored in about the effect of the trade war on China. Better-than-expected numbers might suggest that the impact might not be as deep as many thought," said Michael McCarthy, chief market strategist at CMC Markets.

"Globally we are seeing a shift back towards growth assets and that's coming at the cost of the safe-havens."

The trade war between China and the United States has upset markets globally since it began more than a year ago, fanning concerns of a global economic slowdown.

MCX Commodity Live Tips

 MCX Commodity Live Tips

0 comments:

Post a Comment