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Gold Loses Some of its Safe Haven Appeal Over Chinese Economic Data

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.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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