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Gold prices ease in Asia on profit taking following overnight gains

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Investing.com -

Investing.com - Gold prices eased in Asia on Thursday led by profit-taking after gains overnight on bearish U.S> retail sales data.

On the Comex division of the New York Mercantile Exchange,gold futures for December delivery traded at $1,313.00 a troy ounce, down 0.11%, after hitting an overnight session low of $1,306.10 and off a high of $1,316.20.

Overnight, gold prices spiked after U.S. retail sales figures disappointed markets, which reminded investors the Federal Reserve won't rush to tighten monetary policy.

Core retail sales, which exclude auto sales, rose just 0.1% in July, below expectations for a 0.4% gain.

The numbers softened the dollar by reminding investors that the Federal Reserve won't rush to raise interest rates after it closes its monthly bond-buying program, which is seen taking place in October.

Loose monetary policies tend to bolster gold due to its appeal as a hedge to weaker paper currencies.

Eurostat, the European Union's statistical office, reported earlier that industrial output in the euro area contracted 0.3% in June. It was the second consecutive monthly decline and confounded expectations for a 0.3% expansion, which also supported the yellow metal.

The report came one day after data showed that German economic sentiment deteriorated sharply this month, falling to a 20 month low, largely due to geopolitical tensions.

Silver for September delivery was down 0.01% at $19.843 a troy ounce. Copper futures for September delivery was flat at $3.117 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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