Gold prices fell in Asia on Monday after China data mildly disappointed and investors infrastructure spending plans by president-elect Donald Trump with the Republican part in control of both house of the U.S. Congress.
China said for October rose 8.3%, beating the 8.2% rise seen year-on-year and gained 6.1%, below the expected 6.2% rise seen and increased 10.0%, below the 10.7% increase seen.
Earlier, Japan reported third quarter GDP jumped 0.5% and at a 2.2% pace , handily beating expected gains of 0.2% and 0.9% respectively. Separately, comments from Bank of Japan Governor on inflation were noted.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell 0.55% to $1,217.55 a troy ounce. Also on the Comex, for December delivery dropped 1.03% to $17.203 a troy ounce, while jumped 2.31% increase to $2.565 pound.
Copper was boosted last week after Trump raised the prospect of increased infrastructure spending, while recent signs of strengthening demand in China have also underpinned prices.
Later this week, investors will be looking to congressional testimony by Fed Chair Janet Yellen on Thursday for fresh indications on whether interest rates will rise next month.
Last week, gold prices fell to five month lows on Friday as risk appetite recovered following Trump’s victory in the U.S. presidential election, sapping investor demand for safe haven assets.
Market sentiment was boosted by optimism that increased fiscal spending and tax cuts under a Trump administration will spur economic growth and inflation.
Gold prices were also pressured lower by the stronger U.S. dollar and ongoing expectations for a Federal Reserve interest rate increase in December.
Expectations for higher U.S. interest rates remained intact amid optimism that a pick-up in growth will allow the Fed to tighten borrowing costs.
Investors currently price an 81.1% chance of a rate hike at the Fed’s December meeting; according to federal funds futures tracked Investing.com’s Fed Rate Monitor Tool.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
BOOK PROFIT IN CHENNAI PETRO, T1 ACHIEVED
ReplyDeleteStock Future Tips|stock cash tips