Wednesday , July 28 2021

the movement of the dollar, the focus of German economic data



Gold prices rose on Thursday after weak German data and a fall in stocks raised flags on the pace of global economic growth, while a stable dollar further reduced profits for the metal.

German business morality has deteriorated in April, rising expectations for little improvement as trade pressures hurt the industrial propulsion of the largest economy in Europe, leaving domestic demand to keep pace with growth.

Spot Gold rose 0.1 percent to $ 1,276.19 an ounce, to 0335 GMT.

Gold futures in the US dropped 0.1 percent to $ 1,278 per troy ounce.

Gold is often used as a hedge against economic and financial uncertainty.

The summit rose for a second consecutive session after falling to its lowest level since the end of December earlier this week.

"Global growth data outside of the US is actually quite poor, we have nothing to make us sink," said Stephen Innes, head of marketing and marketing strategy, SPI Asset Management.

"We were expecting some stock market adjustments, and that simply turned the focus back into the main economic factors," added Innes.

Asian stocks also declined as data from Germany reduced appetite for risk, fueling fears that the global economy may still not come out of the forest despite positive data from China and the United States.

Now market participants will redirect their attention to releasing US GDP data, which should be released on Friday.

Investors also looked at further trade talks between the US and China. Both sides should begin the next round of trade talks on April 30, trying to conclude a nearly year-long tariff conflict.

However, the US dollar, which traded close to the nearest two-year peak, limited its further profits for secure bull bars.

A stronger dollar makes gold expensive for holders of other currencies.

The metal is still below its 50-day and 100-day moving average.

"Serious technical sales have put negative pressure on the noble metal for the near future," said Benjamin Lou, analyst, Phillip Futures.

The participation of SPDR Gold Trust, the world's largest fund, fell 0.2 percent to 747.87 tonnes on Wednesday, the lowest level since October 19.

Silver also trades steadily at $ 14.92 an ounce, while platinum rose 0.4% to $ 882.06.

Palladium fell 0.4 percent to $ 1,410.77.


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