Gold scales three-month high, dollar off two-month high

Gold futures rose one percent in American trade to July 17 highs, as the dollar index fell off August 20 highs for the fourth session out of five, following earlier data from the US today. 

As of 02:16 GMT, gold futures due in December rose 0.96% to $1,233.70 an ounce, marking three-month highs, while the dollar index slipped 0.16% to 95.06 away from two-month highs. 

Earlier US data showed retail sales rose 0.1%, same as August and missing estimates of 0.7%, while core prices fell 0.1%, missing estimates of a 0.4% addition. 

The Empire State Manufacturing index rose to 21.1 from 19 in August, besting estimates of 20.4, while wholesale inventories rose 0.5%, adding to the 0.6% increase in July. 

Gold futures rallied $30 on Thursday, marking the best performance this year, while scoring the second weekly profit in a row as traders flock to safe havens as global stocks tumbled last week. 

Wall Street shed 4% last week on concerns of surging treasury yields and expectations of an accelerated pace of policy tightening by the Federal Reserve, and economic slowdown around the world due to trade protectionism. 

US President Donald Trump renewed his criticism of the Federal Reserve's policy tightening, accusing them and the treasury department of making the most problems for America, even over the trade dispute with China. 

In a Pennsylvania rally, Trump said the Federal Reserve has gone "crazy" with its latest rate hikes, while noting that stocks are undergoing a normal correction after a succession of record highs. 

Otherwise, International Monetary Fund head Christine Lagarde expressed her support for China's moves to maintain the flexibility of its exchange rate, while noting the Fed's decisions shouldn't be considered "crazy". 

On Sunday, the People's Bank of China cut reserve requirements for Chinese banks for the fourth time this year amid attempts to ease policies and bolster spending. 

The IMF cut its forecasts for global growth for this year and the next for the first time in two years, with US and Chinese economies the most important downgrades alongside the euro zone due to rising trade protectionism. 

Otherwise, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, rose 5.65 tonnes on Friday to a total of 744.64 tonnes, the highest since September 11, after prices marked the sixth monthly loss in a row in September, the longest such losing streak since late 1996.