Indonesian headline inflation decelerates further in July, monetary policy stance to remain accommodative
Gold slumps from near 8-year peak as risk sentiment improves
Gold prices declined from a near 8-year high as the dollar bounced back after data showed a rebound in U.S. services industry activity, almost returning to its pre-COVID-19 pandemic levels. Expectations of a revival in China's economy also boosted investor appetite. However, a spike in COVID-19 cases around the world limited the metal's downside.
Spot gold eased 0.3 percent to $1,779.45 per ounce at 0817 GMT, having touched a high of $1,789.26 last week, its highest since October 2012. U.S. gold futures edged 0.3 percent lower to $1,787.35
On Monday, the Institute for Supply Management (ISM) said its non-manufacturing activity index advanced to a reading of 57.1 last month, the highest since February, from 45.4 in May and rebounding from a reading of 41.8 in April, which was the lowest since March 2009.
Asian shares rose following a surge sparked by speculation Beijing is trying to arrange a major domestic bull run to support an economy hit by the coronavirus and tensions with Washington. China’s moves came as the U.S.-China disagreements have gone beyond trade and tariff, signalling to some investors that Beijing may be aiming to reduce its dependence on the West.
New coronavirus cases surged in several states of United States, forcing some restaurants and bars to close again in a setback to the recovery. Yesterday, India overtook Russia to record the world's third-highest number of COVID-19 cases, while U.S. coronavirus deaths crossed 130,000.
The Aussie retreated from a 1-month high after the country's second-most populous state announced 6 weeks of stay-at-home restrictions and a lockdown for the city of Melbourne to control rising cases.
The greenback against a basket of currencies traded 0.3 percent higher at 97.06, having touched a low of 96.57 on Monday, its lowest since June 24. The U.S. Treasury yields edged lower, with the benchmark 10-year note yield trading at 0.665 percent.
Investors now await US JOLTS Job Openings data and vice chair for supervision of the Federal Reserve Board of Governors Randal Keith Quarles' speech for further insights on the strength of the economy.