Spot gold edged lower and silver slipped after the recent rally as investors weighed a stronger dollar and mixed economic data from China.
Chinese retail sales in June missed estimates and continued to contract, even as the economy returned to growth in the second quarter. Meanwhile, President Donald Trump has indicated to aides that he doesn’t want to further escalate tensions with Beijing, according to people familiar with the matter.
Spot gold was down 0.3% at $1,805.85/oz at 11:12 a.m. in London. Spot silver lost 1%, while Comex futures declined 0.6% to $19.64/oz. Futures hit $19.845 Wednesday, the highest since Sept. 2016. Platinum and palladium also traded lower. The Bloomberg Dollar Spot Index added 0.2%.
Silver futures on the Comex retreated after touching the highest level since 2016 on Wednesday. Yet, it’s still the second best performer among major metals after gold so far this year. Prices have been aided both by demand from investors seeking safety in a cheaper alternative to gold, and those who bet on a recovery in silver’s industrial use.
Source : Bloomberg