Gold prices change after China data

Tuesday July 16 2019

 

Beijing. Gold prices were little changed on Monday in Asia after data showed China’s second-quarter growth data slowed to a 27-year low - but matched expectations.

Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange were little changed at $1,413.35 by 12:43 AM ET (04:43 GMT).

The safe-haven asset was little changed after the release of a slew of China data this morning.

The country’s GDP growth slowed to 6.2 per cent in the April-June period from a year earlier, data from the statistics bureau showed on Monday. The figure was in line with expectations but lower than first quarter’s 6.4 per cent year-on-year growth. Meanwhile, the country’s industrial manufacturing, retail sales and fixed-asset investmentall beat forecasts. Chinese stocks received a boost following the release of the data, but gold prices were little impacted by them today. Gold prices jumped from $1,200 levels to $1,400 over the past two months amid expectations of an interest rate cut that will weaken the dollar and boost the yellow metal.

On the data front, headline inflation at factory gates rose 1.7 per cent from a year earlier in June, topping expectations for a larger drop to 1.6 per cent, reports on Friday showed.

In other news, tensions between China and the US seemingly eased somewhat as Reuters reported that the US may grant licenses for companies to restart sales to Chinese telecommunication equipment maker Huawei in as little as two weeks. (AFP)