Gold prices struggle as surging T-yields accumulate pressure

Following the release of official statistics showing a spike in retail sales by American merchants in July, the Treasury rates and the US dollar rose, sending gold prices further downward on Tuesday, closing at their lowest levels in more than a month.

Following the release of higher than anticipated Retail Sales Data showing US merchants had a robust July, primarily because of the impact of Amazon Prime Day, the price of the yellow metal continued to decline on Tuesday, adding to prior losses.

The “dead of summer” and vacation times could result in a drop in trading volume, which could have an impact on price changes. The presence of central banks as big buyers of gold stabilizes the market.

Bullish trend potential is obvious, with a slow and steady ascent, despite the lack of certainty around the prospect of a sudden surge. This viewpoint is more compatible with long-term investing plans, particularly in August.