PRECIOUS-Gold rises on equities, commods rallies, China data
* Stocks, commodities jump after Chinese growth data * Analysts see China's GDP raise monetary easing hopes * Gold posts biggest one-day rise in 3 weeks * Coming up: U.S. retail sales Monday (Adds details, updates market activity) By Frank Tang NEW YORK, July 13 (Reuters) - Gold rose about 1.5 percent on F riday, boosted by sharp rallies in equities and commodities after data showed that China's economic growth, though slower, was stronger than some had expected. Friday's rally was the largest one-day gain in three weeks, and it lifted th e precious metal t o a weekly gain from the loss column. China's growth rate slowed for a sixth successive quarter to its weakest pace in more than three years, but some economists had anticipated worse because of signs of a slowdown in the United States and Europe. Bullion, which has been particularly sensitive to central banks' monetary policies, also benefited from perceptions that the Chinese GDP data could open the door for further easing. "It does indicate that the People's Bank of China has to promote more liquidity via further rate cuts or potential fiscal programs that make sure growth does not fall below these levels," said Mark Luschini, chief investment strategist at broker-dealer Janney Montgomery Scott, which has $54 billion in assets. Spot gold rose 1. 2 percent at $1,5 8 9.6 3 an ounce by 2 : 42 p.m. EDT (18 4 2 GMT) U.S. gold futures for August delivery settled up $26 . 7 0 an ounce at $1,592. The pace of trading was slightly slower than usual, as volume was 20 percent below its 30-day norm, p r eliminary Reuters data showed. China, considered an engine of the global economy, said its year-on-year growth was 7.6 percent in the second quarter, below the 8 percent level that in previous downturns has triggered a robust response from policymakers. A nearly 2 percent rally on Wall Street and sharp gains in crude oil and grains amid a weaker dollar also lifted gold, which has largely moved in tandem with perceived riskier assets this year. Gold held gains after data showed U.S. consumer sentiment fell in early July to its lowest level in seven months, while producer prices rose only slightly last month, suggesting inflation pressures remain muted and leaving the door open for more easing by the U.S. Federal Reserve. INDIAN BUYERS RETREAT On the physical markets, gold traders in major consumer India took to the sidelines on Friday as prices recovered, with a weak rupee making the metal more expensive for local buyers. Record local prices have weighed heavily on demand this year. Holdings of gold-backed exchange-traded funds, which issue securities backed by physical stocks of the metal, dropped for a third session on Thursday. The largest gold-backed ETF, SPDR Gold Trust, has seen an outflow of nearly 10 tonnes so far in July. Among other precious metals, silver was up 0. 6 percent at $27.32 an ounce, platinum was up 1.2 percent at $1,425. 7 5 a n ounce, and spot palladium was up 1.3 p e rcent at $580.7 5 a n ounce. 2:42 PM EDT LAST/ NET PCT LOW HIGH CURRENT SETTLE CHNG CHNG VOL US Gold AUG 1592.00 26.70 1.7 1565.60 1596.50 113,691 US Silver SEP 27.369 0.208 0.8 27.060 27.550 25,148 US Plat OCT 1435.20 22.70 1.6 1414.70 1436.00 4,662 US Pall SEP 585.65 10.85 1.9 577.90 586.00 2,166 Gold 1589.63 19.14 1.2 1566.60 1596.50 Silver 27.320 0.170 0.6 27.120 27.550 Platinum 1425.75 16.35 1.2 1418.25 1429.75 Palladium 580.75 7.22 1.3 579.93 583.25 TOTAL MARKET VOLUME 30-D ATM VOLATILITY CURRENT 30D AVG 250D AVG CURRENT CHG US Gold 128,285 162,740 193,965 18.69 -0.93 US Silver 26,788 58,754 57,341 30.97 -0.54 US Platinum 4,740 11,455 9,114 23 0.00 US Palladium 2,208 3,227 4,605 (Additional reporting by Jan Harvey in London; Editing by Alden Bentley)
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