Gold closes in red after issuance of Chinese, US economic readings

Gold prices ticked lower at settlement today, Aug. 8, after the US dollar index rose to a four-week high after the release of data showing a lower-than-anticipated slump in Chinese foreign trade, besides a pullback in the US trade balance deficit.

Bullion for August delivery plummeted by 0.50%, or $9.40, to finish at $1,924.10 an ounce.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, gained 0.50% to stand at 102.56 points at 08:39 pm Makkah time — the second-highest level in four weeks.

China's exports and imports contracted year-on-year (YoY) by 14.5% and 12.4% in July, surpassing forecasts for a 12.5% and 5.0% YoY drop, respectively, reinforcing concerns about the prospects for economic recovery, customs data showed.

Elsewhere, also in July, the US trade balance deficit slipped by 4% on a monthly basis, after imports shed 13% during the same month, data from the US Department of Commerce indicated.

Meanwhile, exports tumbled at a lower rate, reflecting the US economy's benefit from the boom in tourism and some other services such as those of financing.

The US imported about $203 billion in Chinese goods during the first six months of this year, 25% less than in the same period in 2022, according to the latest non-inflation-adjusted data from the US Department of Commerce.