Data Supports World Gold Prices Up

World gold prices have strengthened again. This strengthening was supported by weak economic data from the United States (US). World gold is now moving in the range of USD 1,977 to USD 1,978 per ounce.

Reported by medcom.id, this increase was also influenced by US retail sales data. The data showed growth was slower than forecast for June. This indicates the potential for less robust consumer inflation.

The US Department of Commerce reported US new home construction fell 8.0 percent. This decreased to 1.43 million units in June on an annual basis, following an increase in May.

The US Department of Commerce also reports US building permits. This hinted at future homebuilding, down 3.7 percent in June. Monthly to an annual, seasonally adjusted rate of 1.44 million. Economists expected permits to fall 0.7 percent month-on-month.

Meanwhile, the Federal Open Market Committee (FOMC) Meeting will be held next week. Investors expect one more rate hike at the meeting.

Dovish signals from the European Central Bank and the Bank of England also boosted gold’s appeal. Likewise, the increase in demand for safe havens in the face of deteriorating economic growth in China.