Gold inclines on slower growth in China and uncertainty in the U.S.
The shiny metal gained today after a report showing that the Chinese economy, the major pillar for global recovery, grew 10.3% in the second quarter relative to forecasts of 10.5% and the first quarter's expansion of 11.9%, which underscored concerns with regard the growth pace in China thereby enhancing demand on gold as a safe-haven asset.
In addition, uncertainty surrounding the U.S. economy may give more bullishness to the yellow metal as the FED minutes lowered the U.S. growth forecasts for the current year to range between 3.0% and 3.5% instead of 3.2% and 3.7%. Also, it also raised concerns about jobless rate and declining inflation.
Thus, these worries may give the chance to the shiny metal to gain further especially after the drop in retail sales yesterday ahead of the release of manufacturing data and earnings by JP Morgan.
Moreover, Asian stocks fell today after the slowdown in Chinese growth, while in currency market the dollar continued its drop against a basket of major currencies as seen by the dollar index on the daily charts.
On the other hand, the euro slightly changed hovering above the highest level in two months against the greenback, while the yen advanced against majors as fears enhanced the appeal of the Japanese currency as a refuge.
Yesterday, gold shed $2.80 or 0.23% to close at $1208.00 an ounce. Gold Price was setin London on Wednesday at $1207.00 per ounce during the PM fixing declining from $1212.25 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained unchanged at 1,314.81 metric tons on July 14.
Meanwhile, gold is trading at $1211.07 an ounce recording a high of $1213.55 and a low of $1207.65.