Gold prices rise on falling bond yields, trade uncertainty

Gold Finished Lower on the Day Higher on the Week

Gold Finished Lower on the Day Higher on the Week

US Commerce Department data showed retail sales rose by the most in four months, up 0.7% in July as against 0.3% in June.

Investors have shifted over to safe-haven plays like gold in face of renewed anxiety over trade tensions between the US and China, the two biggest economies in the world, and growing fears of a global slowdown. However, "with bonds and gold overbought and bullish speculative positions at relative extremes last week ... gold may be due for a near-term pause", he said.

Spot gold was up 0.2 per cent at $1,525.21 per ounce at 0105 GMT. Visit for more information on this news. "We're going back a bit to riskier assets", said Phillip Streible, senior commodities strategist at RJO Futures, adding that gold could also be seeing some profit taking.

Bullion contracts on the Multi Commodity Exchange of India, and COMEX, were in the red today as better-than-expected USA retail sales data lifted investors' risk appetite, analysts said.

"The resilient strength among consumers remains an important pillar of strength for the domestic economy...a healthy labor market and low unemployment rate is giving households confidence to spend at levels sufficient to keep the U.S. out of recession", a report by Kitco News said. All this is weakening demand for gold today, ' said FXTM analyst Lukman Otunuga.

Earlier this week, 10-year Treasury yields dropped below the two-year yield for the first time in 12 years. "It's still not breaking trend and that'd probably be a good level for people to start accumulating".

China on Thursday vowed to counter the latest $300 billion U.S. tariffs, but also called on the U.S. to meet it halfway on a potential trade deal.

On the trade front, U.S. president Donald Trump said on Thursday he believed China wanted to make a trade deal and that the dispute would be fairly short. As for its sister metal, silver, spot prices were -0.91% having travelled between a low of 17.05 and 17.33 the high, -1% on the day.

Platinum fell 0.4 per cent to $835.56 an ounce, while palladium was steady at $1,444.95 an ounce.

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