Gold slips as Turkish coup fails
By Duncan Richardson, News Editor
18 Jul 2016
The gold price retreated during Asian trading as safe haven demand for the yellow metal waned after a failed Turkish military coup.
The U.S. dollar has been the main benefactor as investors reversed safe haven trades with calm beginning to return to Istanbul and Ankara. In retaliation, President Erdogan ordered the arrest of 6,000 people he believes organised the coup against his government. The gold price fell 2% last week, its first weekly decline in seven weeks.
In other news, better than expected U.S. retail sales clearly got traders to start contemplating the Fed may actually raise interest rates this year. Raising rates would be positive for the U.S. dollar and act as a drag on the gold price.
Despite the recent price pull back, flows into gold ETFs continue. In just over 6 months, 340 tonnes have been added to the SPDR gold fund.