Gold futures fell during the US session to rebound to its second highest session since June 26 as the USD index rose for the second consecutive session from its lowest level since 14 of the same month according to the inverse relationship between them following the developments and economic data that followed today The world’s largest consumer of metals and its counterpart the US economy, the world’s largest economy.
Gold futures for August delivery fell 0.45% to currently trade at $ 1,253.90 an ounce, showing a two-week rebound from the week’s opening price of $ 1,259.60 per ounce. 0.31% to 94.37, showing a steady rebound from the 4-week low compared to the opening at 94.08.
We followed the Chinese economy, the second largest economy in the world and the second largest industrial nation in the world after the United States of America released the inflation data for June, which showed the slowdown in the acceleration of growth inflationary pressures according to the annual reading of the consumer price index to 1.9% Compared to 1.8% in the previous annual reading for May.
This coincided with the release of the annual reading of the annual PPI, which is a preliminary index of inflationary pressures, which showed the acceleration of the growth of inflationary pressures in China last month to 4.7% compared to 4.1% in the previous annual reading for the month of May, Expectations that accelerated the pace of growth to 4.5%.
On the other hand, we followed the US economy to reveal employment statistics and employment turnover for May, which showed a decline to about 6.64 million from about 6.84 million last April, contrary to expectations at 6.88 million, and this comes after hours of disclosure From the US labor market data for the month of June last Friday.
Which showed a rise in unemployment rates to 4.0% compared to the previous May and expectations for stability for the third month in a row since its lowest since late 2000 at 3.8%, while the average hourly income index showed slower growth to 0.2% Compared to the previous reading for May and expectations of 0.3%.
In the same context, the Non-Farm Sector Change (PPI) index showed a slowdown in job creation last week to 213,000 jobs versus about 244,000 jobs in May, beating expectations of about 195,000 jobs. Hours after the Reserve Bank unveiled Thursday the minutes of the Federal Committee meeting on June 12-13.
Fed monetary policy makers raised interest rates by 25 basis points for the second time this year to 1.75% to 2.00%, which was expected by analysts at the time, with members of the Federal Market Commission Which is open to further tightening monetary policy and growing opportunities to raise interest rates on federal funds four times this year.
In addition, the World Gold Council recently disclosed that global demand for gold fell 7% in the first quarter of 2018 to 973.5 metric tons, the lowest level since the first quarter of 2008, adding that the drop in demand for gold was led by Investment sector, explaining that the total investment in the yellow metal fell 27% to 287 metric tons against 393 metric tons in the first quarter of last year 2017.
World Gold Council also reported that investment in bullion and gold coins also declined in the first quarter by 15%, while central banks’ demand for gold rose 42% to 116.5 mt, particularly with Russia’s demand for yellow metal rising, At 487.7 mt during the first quarter, in conjunction with the growth of the supply of mines 1% on an annualized basis during the last quarter to about 770 metric tons.