Important data emerges, gold affected by Investing.com

Written by Gina Lee

Investing.com – It was down Tuesday morning in Asian trading. However, the yellow metal has remained near a week-long high as the ever-growing number of COVID-19 cases around the world and recent disappointing Chinese economic data have boosted safe-haven assets.

Update:

The annual US retail sales report was released and was found to be strongly negative, as it registered 15.78% and the previous figure was 18.73%, while it was negative since was -0.4%, down sharply from the last statement of 1.6% and far from the estimate that expected it to reach 0.1%.

It was also negative, registering -1.1%, and it is expected to reach 0.3%.

Data was also released and turned positive, registering 0.9% more than the expected 0.5%, while annual industrial production data rose 6.55%, down from the last release, which recorded at the time 9.91%.

Markets are not expected to react violently to this data, as past data points to a shift by consumers towards reduced spending on goods and increased spending on services, following the lifting of restrictions and epidemic closures. This is why the market is ready to receive negative data and it will probably not be so shocking for the various markets, the most important of which are the dollar and gold.

Spending may return to its old equilibrium with the development of the delta variable and its increased risk of economic activity, which may lead to reduced demand for services such as travel and entertainment.

It is now trading at $ 1,788.70 an ounce, dropping gains in today’s session and down 0.05% from the last close.

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It was also down 0.11% to $ 1,787.90 at 12:18 am ET (4:18 GMT), after hitting its highest level since August 6 on Monday. The dollar, which generally moves the opposite way with gold, rose on Tuesday.

Investors are now waiting for a release later today for clues as to when it will begin.

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Boston Federal Reserve Chairman Eric Rosengren said on Monday that a strong employment report in August could qualify the central bank to begin reducing assets. Like at the town hall for the teachers later in the day.

In the Asia-Pacific region, the Reserve Bank of Australia released the minutes of its last meeting earlier today. The Reserve Bank of New Zealand and the Bank of Indonesia will also release their policy decisions on Wednesday and Thursday.

While investors also continue to digest economic data released Monday by China, which indicates that industrial production and retail sales grew more slowly than expected in July. The COVID-19 epidemic in the country and inclement weather impacted the recovery of the world’s second-largest economy.

The Industrial and Commercial Bank of China has also postponed precious metals transactions for some accounts, citing increased volatility in global and domestic precious metal prices.

In addition, the growing unrest in Afghanistan with the return of the Taliban to Kabul has also affected investor radars.

At the level of other precious metals, it rose 0.3% and platinum 0.1%, while it stood at 2,605.92.