Gold, which has experienced the biggest drop in a month, is flat on the new trading day.
Gold remained flat after its biggest drop in a month as investors flocked to the dollar amid growing economic slowdown signals. Gold is trading at around $1780 an ounce on the spot market.
Spot gold turned its direction down as the dollar gained value again after four weeks of rising. While the latest US data pointed to rapid cooling in production and a decline in real estate confidence, this situation reinforced concerns about global growth risks after weak numbers from China.
The economic weakening in China and the Fed’s tightening of its anti-inflationary policy reduced the attractiveness of gold while increasing the attractiveness of the dollar, prompting the country’s central bank to make a surprise cut in interest rates.
Gold is focused on the Fed’s July meeting minutes, which will be released on Wednesday and may hint at the next rate hike.
