Gold Pared Losses

Gold pared its losses at the beginning of the week, after having declined last Friday to its lowest level in five weeks.  

U.S. consumer spending advanced for the fourth consecutive month in July, amid strong demand for automobiles. Consumer spending rose 0.3% in July after a 0.5% gain in June, the Commerce Department said yesterday. Such data could pave the way for the Federal Reserve to hike interest rates this year. The U.S. dollar index settled at 95.60 pips.

Greece's economy expanded slightly in the second quarter, but the lack of demand and weak investment mean a strong recovery after years of recession remains indefinable.

Recent data showed that Greece’s economy grew by 0.2% from April to June; slightly less than a previous estimate of 0.3% and it was the first quarter-on-quarter expansion since late 2015 also following a 0.2% contraction in the first quarter.

On Monday, the Euro settled at $1.12 vs. USD, reinforcing expectations that the pair could decline to $1.11 during the course of the day.

U.S. dollar spiked higher vs. Japanese Yen in more than three weeks amid expectations that the Fed could hike interest rates this year. USD touched ¥102 yesterday, but failed to settle above.

Oil prices declined yesterday on caution over galloping Middle East crude oil production and a stronger USD. U.S. crude fell to $46 before settling above $47.

The most important economic events:

  • USD Consumer Confidence (AUG): (GMT 16:00) – Important – Forecast (97) – Previous (97.3).
  • EUR German Consumer Price Index (YoY) (AUG P): (GMT 16:00) – Important – Forecast (0.5%) – Previous (0.4%).

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