2019.08.1606:44:00UTC+00Gold Prices Dip As Recession Worries Ebb

Gold prices slipped into the red on Friday as recession worries ebbed and China hinted at more support for its economy.

Spot gold declined 0.7 percent to $1,512.54 per ounce while U.S. gold futures were down half a percent at $1,523.65 an ounce.

U.S. retail sales jumped by the most in four months in July, a report showed overnight in a reassuring sign for the world's largest economy.

Retail sales rose a healthy 0.7 percent last month after a 0.3 percent gain in June as consumers spent more at retail stores and restaurants.

Meanwhile, a day after ECB's Rehn flagged the need for a significant easing package in September to support the flagging euro zone economy, China's state planner said it would roll out a plan to boost disposable income this year and in 2020.

As global growth falters amid simmering U.S.-China trade war, there is now talk of aggressive stimulus from all the major central banks.

The focus now shifts to the Jackson Hole symposium. Fed Chair Powell's comments will be closely watched for fresh hints on the interest rates outlook amid heightened concerns over the potential for a recession and an ongoing U.S.-China trade spat.

U.S. President Donald Trump said on Thursday the U.S. is having very good discussions with China and the trade dispute would be fairly short.

On the other hand, Beijing vowed to counter the latest tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal.