Gold updates – Gold Gains On Slowing China Growth Prospects
Gold updates – Gold prices gained by 0.21 per cent on Monday as weak economic data out of China released over the weekend added to concerns over the health of the world’s second largest economy. Industrial production rose at an annualized rate of 6.0 per cent in April, below expectations for a 6.5 per cent increase and slowing from a gain of 6.8 per cent in the preceding month, the General Administration of Customs said on Saturday. The soft data followed disappointing Chinese trade and inflation figures last week, adding to doubts about whether the world’s second-largest economy is stabilizing.
At the MCX, Gold futures for June 2016 contract is trading at Rs 30,096 per 10 gram, up by 0.21 per cent after opening at Rs 30,064, against the previous closing price of Rs 30,034. It touched the intra-day high of Rs 30,116 till the trading.
However, a stronger dollar reduced the appeal of gold as an alternative asset. Stronger greenback makes the bullion expensive for those holding other currencies, thus reducing demand.
In the week ahead, market players will be turning their attention to Wednesday’s minutes of the Federal Reserve’s April policy meeting for fresh clues on the timing of the next US rate hike.
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