The gold price continued to slide lower on Thursday afternoon after the dollar strengthened following upbeat US data, and as concerns over China’s economy eased.
Spot gold was last at $1,116/1,116.4 per ounce, down $8.20 on the previous close. Trade has ranged from $1,113.7 to $ 1126.8 so far.
In today’s data, US core retail sales month-over-month in July were in-line with forecasts at 0.4 percent, while retail sales month-on-month in July matched the consensus at 0.6 percent.
US weekly unemployment claims were 274,000, near the prediction of 272,000 and the previous reading of 270,000.
Additionally, import prices month-over-month in July were down 0.9 percent, below the estimate of one percent.
“The dollar has gained upside following this signal of resurgence in retail sales, most likely in expectation this will add weight to the September FOMC rate rise camp,” Tom Moore, FastMarkets analyst, said.
The dollar index was last at 96.46.
Meanwhile, China’s yuan was devalued for a third straight day today, but the People’s Bank of China said there is no basis for a further depreciation in the yuan and that it will keep the currency stable.
The markets stabilized after the comments, with Asian and European stocks rebounding today from losses earlier in the week. In the eurozone, the German final CPI came in as expected, rising 0.2 percent, as did the French CPI, with its forecast 0.4 percent decline.
In the other precious metals, silver was 10 cents lower at $15.44/15.48. Platinum at $991/996 fell $6 and palladium at $619/624 was down $4.
(Editing by Martin Hayes)
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