Mubasher: Gold traded lower earlier on Monday, hovering above the $1,400 mark, as figures from China, mollifying worries about global economic growth, and fuelling appetite for riskier assets, Reuters reported.
By 7:17 am GMT, spot gold fell by 0.2% to $1,413.20 per ounce, while US gold futures grew by 0.2% to $1,415.10 per ounce.
At 9:04 am GMT, spot gold went up by 0.07% to $1,416.78 per ounce, while gold futures climbed by 0.42% to $1,418.20 per ounce.
China’s industrial production grew by 6.3% year-on-year in June, while fixed asset investment rose by 5.8%.
“Better-than-expected economic data from China just erodes concerns that the global slowdown is not as deep as expected, therefore causing some profit-taking in gold,” OCBC Bank economist Howie Lee was quoted by Reuters.
Curtailing further the risk-off sentiment were gains in Asian stock markets on Monday as Chinese retail and industrial figures underlined the world’s second biggest economy may be starting to stabilise, as stimulus measures from Beijing seemed to be paying off.
However, China’s economic growth lost momentum to 6.2% in the second quarter of 2019, the weakest pace seen since almost three decades.
“Further tensions around trade talks [between Beijing and Washington] and geopolitical concerns in the Middle East, the need for gold as a hedge still remains strong,” Lee said.
Although the US dollar advanced slightly on Monday, this came after three consecutive sessions on expectations of an interest rate cut by the Federal Reserve later this month.
At 9:08 am GMT, the dollar index, which tracks the greenback against six major rivals, ticked up by 0.03% to 96.84.
“The next big event for gold is the Federal Open Market Committee meeting at the end of this month, as expectations fluctuate between quarter percent cut and half percent cut, we should see that have an impact on gold prices,” CMC Markets chief strategist McCarthy was quoted by the news agency.