Gold rises as dollar drops on weak US data

Gold live prices rose on Monday as the dollar fell to multi-month lows following weak economic data from the United States that has diminished the outlook for aggressive rate hikes from the US Federal Reserve.
Spot gold rose 0.19 per cent to $1,230.91 per ounce as of 0048 GMT. US gold futures for August delivery rose 0.24 per cent to $1,230.50 per ounce.
Asian stocks rose on Monday after the Dow and S&P 500 hit record highs on Friday on bets the Federal Reserve’s accommodative monetary policy will continue following lackluster US data, with that view sending the dollar reeling.
US consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and soft domestic demand that diminished prospects of a third interest rate increase from the Federal Reserve this year.
Hedge funds and money managers cut their net long position in COMEX gold to the smallest since January 2016 in the week to July 11, as they switched to their first bearish stance in silver in nearly two years, US Commodity Futures Trading Commission data showed on Friday.
ICE Benchmark Administration, a unit of Intercontinental Exchange, was confirmed on Friday as the new operator of the London Bullion Market Association silver benchmark. The LBMA said it expected IBA to take over the LBMA Silver Price in autumn this year, confirming a Reuters report.
China is expected to report on Monday that its economy grew 6.8 per cent in April-June from a year earlier, cooling from the previous quarter’s robust 6.9 per cent pace.
India’s trade deficit narrowed more than expected to $12.96 billion in June as gold imports nearly halved from a month earlier, government data showed.
Gold demand fell in India this week, with dealers offering a discount for the first time in one month despite a correction in local prices as consumers advanced purchases in June before the rollout of a new national sales tax.
Holdings of the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust GLD, fell 0.43 per cent on Thursday from Wednesday.
South Korea proposed military talks with North Korea, the first since 21015, and a halt to hostile activities near the inter-Korean border, the South’s vice defense minister said on Monday, after a series of missile tests by the North in recent weeks.

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