Mubasher: Gold prices rose on Tuesday, while market participants awaited US retail sales data, seeking an insight into the health of the world’s biggest economy, amid looming fears over a global economic downturn, Reuters reported.

By 9:44 am GMT, spot gold rose by 0.28% to $1,417.40 per ounce, while US gold futures went up by 0.11% to $1,415.67 per ounce.

“Investors are positioning realising there could be a knee-jerk reaction lower again if retail sales numbers come out strong,” Vanguard Markets managing partner Stephen Innes was quoted by Reuters.

The US Federal Reserve is set to lower interest rates at its policy meeting at the end of this month, as markets pricing in a 25-basis-point cut.

Retail sales data was not expected to have a huge impact on the “overall scheme of things as far as the Fed narrative goes,” Innes said.

In addition, the US dollar remained nearly stable against its major peers on the prospects of the Fed cut.

At 9:49 am GMT, the dollar index, which gauges the US currency against six major rivals, rose by 0.19% to 97.12.

As far as trade is concerned, US Treasury Secretary Steven Mnuchin said that he along with Trade Representative Robert Lighthizer would hold talks with their Chinese counterparts via phone this week.