Gold Down Over Signs of Some Economic Recovery
Gold was down on Thursday morning in Asia, with investors retreating from the safe-haven yellow metal. Gold Futures inched down 0.04% at $1,951.70 by 12:48 AM ET (5:48 AM GMT) Investor risk sentiment increased with signs that some countries are showing momentum in their economic recovery from COVID-19.
Data released on Thursday showed an 11.2% increase in durable goods orders month-on-month in July, comfortably beating the forecasted 4.3% growth prepared by Investing.com. Orders increased 7.7% month-on-month in June.
In Asia, China’s National Bureau of Statistics said earlier in the day that profits at Chinese industrial firms grew 19.6% year-on-year in July. The profits grew for a third straight month and at the fastest pace since June 2018.
Investors are now looking to U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium later in the day, with the Fed widely expected to announce further stimulus measures to combat COVID-19's economic impact.
Meanwhile, U.S.-China tensions simmered after China fired four missiles into the disputed South China sea on Wednesday. Separately but on the same day, the U.S. slapped sanctions on a further 24 Chinese companies.
China Securities Regulatory Commission Vice Chairman Fang Xinghai reportedly requested an online or phone meeting with U.S. officials., with the U.S. is yet to respond to his request.