Gold prices fell during these trading moments, today, Tuesday, despite the decline in the dollar index, but the US currency benefited from high bond yields and economic concerns about China.

Meanwhile, markets are now awaiting the release of US retail sales data which could shed light on the impact of higher interest rates on consumer spending.

Gold and the dollar now

Gold futures fell 0.4% to $1,936 an ounce.

While spot contracts fell by 0.13% to $1905 an ounce.

On the other hand, the dollar index fell by 0.13% to 102.927 points.

gold when settling yesterday

Gold prices fell slightly at the end of trading, yesterday, Monday, with the dollar rising to its highest level in a month.

At the close, the yellow metal futures for August delivery fell 0.1% to $1910.6 an ounce, after it was on its way to its lowest level in a month.

Important data for the Fed

The US dollar turned near its highest levels in more than a month amid concerns about the Chinese economy, making gold too expensive for foreign buyers.

While the US Treasury yields for 10 years reached their new peak since November 2022, which negatively affected gold, which does not yield any interest.

China unexpectedly cut key interest rates for the second time in three months on Tuesday, while industrial production and retail sales grew in July less than expected, indicating the need for policymakers to ramp up support measures to boost the stalled recovery.

The People's Bank of China said it cut the interest rate on loans worth 401 billion yuan ($55.25 billion) under its one-year medium-term lending facility for some financial institutions by 15 basis points to 2.50 percent from 2.65 previously.

The decline in gold prices was due to higher yields in the US dollar and Treasury bonds, as investors weighed potential policy actions from Chinese regulators to address rising financial and property risks, according to NAB Commodity Research.

All eyes now turn to US retail sales data due later in the day.

Kelvin Wong, senior market analyst, Asia Pacific at OANDA, said that if the data surprises markets and rises higher than expected, there is likely to be more downside pressure on gold due to more evidence of the strength and resilience of the US economy, which could allow the Fed to The Fed allows interest rates to remain higher for a longer period of time.

Highlighting investor sentiment towards gold, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell 0.4% to their lowest level since January 2020 on Monday.

other metals

Spot silver settled at $22.62 an ounce and platinum slipped 0.1% to $900.83. Palladium fell 0.6% to $1,262.34