The dollar gained after surprisingly strong US retail sales data, which capped the upside momentum in gold . Retail sales rose 0.7% last month after a 0.3% gain in June. The result showed that consumer spending remains healthy despite growing uncertainty over the US-China trade spat. In turn, strong numbers decreased the probability of a rate cut by the , which plays into dollar’s hands and limits demand for the bullion.
Nevertheless, considering a number of risk factors from the trade war to Brexit and the US yield curve inversion, investors will likely continue to long the yellow metal as a safe haven amid the lingering global uncertainty. As such, after a possible correction due to a partial profit taking in the short term, the bullion could target fresh long-term highs above $1,535.