Gold declines from nine-year peak, dollar off month lows

Gold futures tilted lower in Asian trade off September 2011 highs as the dollar index climbed from June 11 lows, ahead of US inflation data. 

As of 03:58 GMT, gold futures due in August fell 0.15% to $1,805 an ounce, while the dollar index rose 0.10% to 96.86. 

From the US, producer prices are expected up 0.4% in June, while core prices are estimated up 0.1% m/m. 

US House of Representatives majority leader Nancy Pelosy said the next bill to counter Covid impact will include trillions of dollars to support local governments, workers, and medical efforts to contain the pandemic. 

Pelosy said the House will discuss President Donald Trump's withdrawal of the US from the World Trade Organization as well. 

US Treasury Secretary Steven Mnuchin said the administration focus is on generating jobs, noting that experts expected a loss of 40 million jobs due to the pandemic, but only lost 22 million, and the economy is back to generating new jobs currently. 

White House chief medical councilor Anthony Fauci said he hopes for a coronavirus vaccine by the end of the year or early 2021, however warning the pandemic hasn't reached a peak yet. 

The World Health Organization also warned the rate of Covid 19 spread has increased recently, warning the peak hasn't been reached yet. 

The WHO experts said the current gap between high new infections and slower death could be bridged in a few weeks, with the total death toll standing currently at 545,000. 

Recent data showed global gold funds reported an increase of 2.7% in cash flows, adding 104 metric tonnes of gold, or about $5.6 billion in June, with total increases in the first half of 2020 reaching $39.5 billion, a record high on haven demand.