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13.08.2015 15:24 Gold declines as the U.S. dollar rose on the U.S. retail sales data and as concerns over the further yuan devaluation eased

Gold traded lower as the U.S. dollar rose on the U.S. retail sales data and as concerns over the further yuan devaluation eased. The People's Bank of China (PBoC) has devaluated the yuan for the third day. But the central bank tried to reassure market participants on Thursday, saying there was no basis for further yuan devaluation.

The yuan depreciated 1.9% on Tuesday, 1.6% on Wednesday and 1.1% today. China's central bank set Thursday's daily fixing at 6.4010 per U.S. dollar, down from 6.3306 on Wednesday.

 

 

The U.S. retail sales climbed 0.6% in July, exceeding expectations for a 0.5% increase, after a flat reading in June. June's figure was revised up from a 0.3% drop.

 

 

The increase was partly driven by higher automobiles purchases. Automobiles sales rose 1.4% in July.

 

 

Retail sales excluding automobiles increased 0.4% in July, in line with forecasts, after a 0.4% gain in June. June's figure was revised up from a 0.1% decrease.

 

 

These figures could add to speculation on that the Fed starts raising its interest rate next month.

 

 

Market participants eyed the report by the World Gold Council (WGC). Global demand for gold dropped 12% in the second quarter due to lower demand from Asia. Demand for gold totalled 914.9 tons in the second quarter, down from 1,038 tons during the same period in 2014.

October futures for gold on the COMEX today declined to 1115.20 dollars per ounce.



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