Gold Loses Some of its Safe Haven Appeal Over Chinese Economic Data
Arslan Butt • 1 min read
Early on Tuesday morning, GOLD is trading bearish after losing some of its safe haven appeal over better than expected Chinese economic data. At the time of writing, Gold is trading at around $1,400.
Even though Chinese GDP slowed to its lowest levels in 27 years in Q2 2019, strong industrial output and retail sales boosted the sentiment and sent global stock markets rallying on Monday, causing investors to shift from gold to riskier assets. Stock markets around the world rose to a near 18-month high after China’s quarterly growth reading came in higher than forecast at 1.6%.
In addition, the US dollar also made some gains against other major currencies, making gold more expensive for international traders to purchase. Last week, gold had gained over 1% over increased Fed rate cut sentiments which weighed on the US dollar. The increased likelihood for a rate cut as soon as sometime this month continue to support gold prices for now.