SINGAPORE: Gold prices eased on Thursday due to a stronger US dollar, although concerns over rising coronavirus cases and simmering US-China tensions kept bullion close to a near nine-year high. Spot gold was down 0.3% to $1,805.62 per ounce by 0705 GMT, just $12 shy of its highest since September 2011 hit last week. US gold futures fell 0.3% to $1,807.90.
Data out of China showed its economy grew 3.2% in the second quarter from a year earlier, while retail sales unexpectedly fell again last month, pointing to waning consumer demand.
Michael McCarthy, chief strategist at CMC Markets, said the data was mixed and gold's elevated levels reflected concerns from some segments of investors about the global economic growth outlook for the rest of the year.
The positive readings from China failed to help risk sentiment hit by a growing Sino-US rift over the control of advanced technologies and civil liberties in Hong Kong.
"Asset markets are trading in reasonably tight correlations, so the gold price is tracking behaviour in broader financial markets," IG Markets analyst Kyle Rodda said.
Safe-haven gold has risen more than 19% so far this year, also benefiting from low interest rates and widespread stimulus as it's seen as a hedge against inflation and currency debasement, although market participants are still divided on the outlook for inflation.
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