Abstract: The unexpected weakness of the terrorist data released by the United States has made the market extremely disappointed, which has a negative impact on the US economy and increased risk sentiment.

On August 18th, overnight, the unexpected weakness of the terrorist data released by the United States made the market extremely disappointed, which had a negative impact on the U.S. economy and increased risk sentiment. In addition, tensions in Afghanistan have increased, supporting the gold market.

Overview of Spot Gold Trends

In Asian markets on Wednesday (August 18), spot gold was basically flat. The current trading volume is around US$1,785. The price of gold once approached the 1800 mark yesterday. As of press time, spot gold was quoted at $1,789.70 per ounce, an increase of 0.21%.

Risk aversion in the market heated up yesterday. The surge of cases infected with the delta variant of the new crown virus posed a threat to the global economic recovery. Coupled with the lower than expected US retail sales data, some investors turned to the US dollar to hedge, and gold fell from its high level.

News side

"Terrorist data" unexpectedly disappointed

Specific data show that the US retail sales monthly rate in July actually announced -1.10%, expected -0.3%, and the previous value was 0.6%; the US retail sales annual rate in July actually announced 15.78%, and the previous value was 17.98%. The monthly rate of core retail sales in the United States in July actually announced -0.40%, which is expected to be 0.2%, and the previous value was 1.3%.

The agency commented on the monthly rate of retail sales in the United States in July and pointed out that rising prices of groceries, dining out, personal care, and clothing may limit discretionary spending in the coming months. A report released by the University of Michigan last week showed that due to high inflation, the purchasing situation deteriorated to the lowest level since April last year. Retail data has not been adjusted due to price changes.

CNBC commented on the monthly rate of retail sales in the United States in July and pointed out that due to concerns about the delta variant virus that inhibited economic activity, government stimulus measures dried up, and US consumers reduced their consumption in July more than expected.

Increased tension in Afghanistan affects people's hearts

From the beginning of the US withdrawal in May, in just over three months, the Taliban launched a fierce attack and took almost the entire territory of Afghanistan. On August 15, local time, Afghan President Ghani fled Kabul under the escort of a car full of cash. At the same time, the Afghan Taliban announced on the evening of the 15th that they had taken the presidential palace in the center of Kabul.

Just after the sudden change in the situation in Afghanistan, a few days ago, Chinese State Councilor and Foreign Minister Wang Yi connected two telephone calls in just 24 hours. According to the website of the Ministry of Foreign Affairs, on August 16, Wang Yi had a phone conversation with Russian Foreign Minister Lavrov at an appointment. Wang Yi said that the situation in Afghanistan has changed drastically. The former regime collapsed without a fight and the Taliban declared victory. International public opinion generally believes that this outcome has its inherent logic and inevitability, which indicates that military intervention and power politics are unpopular and will eventually fail.

Wang Yi said that under the new situation, it is necessary for China and Russia to strengthen strategic communication and coordination: First, to safeguard the legitimate interests of China and Russia in Afghanistan, communicate the situation in a timely manner, support each other, push Atta to take responsibility, and effectively protect the personnel, institutions and cooperation between China and Russia. Corporate security. The second is to encourage Atta to pursue a moderate and prudent religious policy, work with all parties to form an open and inclusive political structure, and pursue a peaceful and friendly foreign policy, especially to live in harmony with neighboring countries to achieve reconstruction and development of Afghanistan.

In this regard, Lavrov said that changes in the situation in Afghanistan will have a complex impact on the world situation. The Taliban declared that the war in Afghanistan has ended and they have begun to maintain security in Kabul, and are willing to ensure the safety of diplomatic missions of various countries. The Russian side is willing to check the situation with China in a timely manner and jointly respond to the development and evolution of the situation in Afghanistan.

On the same day, Wang Yi also had a telephone conversation with the US Secretary of State at an appointment. Brinken thanked China for participating in the Doha meeting on Afghanistan, saying that the current situation in Afghanistan is entering a critical phase. The Taliban should make a clean break with extremism, choose an orderly transfer of power and establish an inclusive government, and expect China to play an important role in this. The United States recognizes that the future of Afghanistan should be decided by the Afghan people, and calls on the Taliban to ensure the safety of all people who wish to leave Afghanistan.