Gold futures rose above the $ 1,200 per ounce mark during the US session as the dollar index fell on the back of the US economy, the largest economy in the world.

Gold futures for December delivery rose 0.38% to currently trade at $ 1,205.70 per ounce from the opening at $ 1,201.10 per ounce. The US dollar index fell 0.47% to 94.48 compared to the opening. At 94.93.

We saw the New York Manufacturing Index, which showed a contraction to 19.0 from 25.6 last August, worse than expected at 23.2, a few hours after the retail sales, which accounted for about half of consumer spending, More than two-thirds of US GDP slowed growth more than expected last month.

Following the release of recent US inflation data, which showed last month’s PPI contraction for the first time this year, an initial indicator of inflationary pressures and slowing consumer price growth, investors and speculators have been forced to wait for monetary policymakers to go ahead with the Federal Reserve To raise interest rates on federal funds twice more this year.

The World Gold Council disclosed last month its forecast for higher demand for the yellow metal in the second half of 2018, citing high inflation and the possible impact of the potential trade war and its impact on currencies. Global trade tensions, but gold did not rise during the first half of this year due to strength of the US dollar.

The strength of the greenback is due to growing market expectations for a faster rate hike in federal funds this year following the strength of US economic data. The Council noted that demand for the yellow metal is likely to rise in the second half of the year with The tendency to use gold as a tool to hedge inflation, in addition to the recent decline in prices support the increasing demand for gold.