NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Gold pushes higher as China trade data spooks investors

Published 13/10/2016, 08:14
Gold rises as China trade data spooks investors
USD/JPY
-
XAU/USD
-
XAG/USD
-
DX
-
GC
-
HG
-
SI
-

Investing.com - Gold prices pushed higher during Europe's session on Thursday, after surprisingly weak Chinese trade data raised fresh concern about the world's second-largest economy.

Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $7.05, or 0.56%, to $1,260.95 a troy ounce by 3:10AM ET (07:10GMT). A day earlier, the yellow metal dipped $2.10, or 0.17%.

China's exports tumbled nearly 10% year-on-year in dollar-terms, and imports fell 1.9% from the previous year. In yuan terms, exports dropped 5.6% on-year, while imports rose 2.2%.

That left China with a trade surplus of $41.99 billion for the month, the lowest in six months, the General Administration of Customs said on Thursday.

The weak Chinese trade data triggered a fall in global equities and a drop in the U.S. dollar and gave a lift to both gold and the yen, which are considered safe haven assets that tend to rise in times of market duress.

Against a basket of six major currencies, the dollar last stood at 97.99, having pulled back from a seven-month high of 98.11 set earlier on Thursday.

Meanwhile, minutes of the Federal Reserve's September policy meeting released on Wednesday showed several voting members of the policy committee judged a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen.

Markets are currently pricing in around a 65% chance of a rate hike at December's meeting, according to 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.

There are a few economic reports on Thursday, including data on weekly jobless claims and import prices at 8:30AM ET (12:30GMT), while the federal budget is due at 2:00PM ET (18:00GMT).

Also on the Comex, silver futures for December delivery inched up 5.2 cents, or 0.3%, to trade at $17.55 a troy ounce during morning hours in London, while copper futures lost 1.8 cents, or 0.85%, to $2.158 a pound.

China is the world’s largest copper consumer, accounting for nearly 45% of world consumption.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.