On Tuesday, gold trading session was calm and the day was closed with a slight decline compared to the opening price. However with Wednesday start the bears again came to the market, which already lowered the price by 0.52% in relation to the opening price. The gold is now trading on the new minimum for more than 1.5 years.
The American currency is benefiting greatly from the economic crisis in Turkey, because now it is the US dollar, and not gold, that acts as the main defensive asset for investors who get rid of risky assets fearing that the crisis in Turkey can have a strong negative impact on other economics.
The growth of US dollar makes the precious metal much more expensive for many investors, therefore, if the bull trend is maintained in the dollar, gold will remain under pressure and most likely continue to move within the current bearish trend.
Unlike the previous days, when there were no important economic news from the United States today in the United States there will be a fairly extensive statistical block including the data on retail sales (a decrease from 0.5% to 0 is expected , 2%), industrial production (expected to decline from 0.6% to 0.3%) and other statistics that may have a significant short-term impact on the dollar.
As we can see, experts predict weaker data for July, which, if confirmed by actual indicators, may put some pressure on the dollar. However with this USD dollar uptrend in the action, the impact of today's statistics will be severely limited, as this is not news that can to develop a strong trend movement.