Gold Price Gains as China Manufacturing Figures Add to Case for Haven
London (Feb 1) Gold climbed for a fifth day in six after data showed a further contraction in China’s manufacturing, adding to the case for haven assets as investors boost holdings.
Bullion for immediate delivery rose 0.4 percent to $1,123.10 an ounce by 10:47 a.m. in London, according to Bloomberg generic pricing. On Friday, prices capped a 5.4 percent monthly advance, the biggest in a year.
Gold has rallied this year as a global selloff in equities spurred by concerns over the slowdown in China stoked demand. The country’s official factory gauge signaled conditions deteriorated for a sixth month in January, missing economists’ expectations, while a separate measure from Caixin Media and Markit Economics also showed a decline.
“The price is being supported on many fronts,” Commerzbank AG said said in a note to investors Monday. “Weak economic data from China for example is leading to greater uncertainty among market participants about the state of the global economy.”
Inflows into gold-backed funds, which last month were the most in a year, and increased sales at U.S. and Australian mints have also supported prices, Commerzbank said.
•Holdings in gold-backed exchange-traded products climbed for a 10th straight day on Friday to the highest since early November. Assets rose 0.8 metric ton to 1,516.3 tons, data compiled by Bloomberg show.
•Spot silver gained 0.4 percent, while platinum fell 0.1 and palladium declined 0.6 percent.
•Bank of Japan Governor Haruhiko Kuroda and European Central Bank President Mario Draghi have speeches scheduled, while U.S. payrolls and unemployment rate data for January are due for release on Feb. 5.
•“This week, market attention will again be central-bank focused, with Draghi and Kuroda due to speak, as well as a raft of economic data out of the U.S., which will culminate in another much-awaited payroll report,” Jordan Eliseo, chief economist at trader Australian Bullion Co. in Sydney, said by e-mail.
Source: Bloomberg
