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Gold rallies in Asia ahead of China GDP
On Monday, gold headed north in Asia ahead of China’s second quarter GDP, retail sales and industrial output for June. Market participants also paid attention to property development.
In New York, August delivery gold futures inched up 0.25%, trading at $1,230.56, while copper futures rallied 0.19% getting to $2.689 a pound.
China’s second quarter GDP added 1.7%, meeting expectations, while a year-on-year leap of 6.9% moderately surpassed the expected 6.8%.
The previous week, gold gained to two-week peaks as poor American inflation data contributed to doubts over whether the key US bank would lift interest rates for a third time in 2017 or not.
Gold concluded the week with a gain of 1.32%.
In June, American consumer price inflation dropped to 1.6% from May’s outcome of 1.9%, as the Labor Department reported on Friday.
Expectations that interest rates will remain low tend to underpin gold, struggling to compete with yield-bearing investments when borrowing costs ascend.
The market has started the week with a mixed sentiment…
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.