Gold Up On Solid China Data, Weaker Dollar
SINGAPORE (Aug 9) Gold rose for a third straight session Friday as the dollar fell to a seven-week low, while strong rebounds in China`s exports and imports sparked economic optimism and stoked demand hopes, lifting bullion`s inflation-hedge appeal.
- As of 03:15 ET, gold gained 0.05 percent or 0.59 points to $ 1,311.06
- Spot silver edged higher 0.39 percent or 0.08 points to trade at $ 20.27
Data released Thursday showed Chinese imports of raw materials and industrial commodities edge higher in July, showing signs of stabilizing aafter a two-quarter downturn in the world’s second largest economy.
Chinese exports and imports both grew at faster-than-expected paces in July with exports rising 5.1 percent compared with the expected rise of 2 percent, while imports surged 10 percent, also beating forecasts.
- Spot platinum went up 0.09 percent to $ 1,489.25
- Spot palladium rose 0.50 percent to $ 742.45
Gold prices also benefited from the U.S. dollar`s drop for a fifth consecutive session against major counterparts. A weaker dollar can lift dollar-denominated gold futures by making them appear cheaper for buyers using other currencies.
Gold extended its early gains after data showed U.S. claims for unemployment benefits rose last week, adding to fears regarding the Federal Reserve ultra-loose monetary stimulus where slower employment growth could spur the central bank to keep its gold-supportive policies in place longer.
Initial jobless claims rose 5,000 in the week-ended July 27 to 333,000, roughly meeting estimates that called for a rise to 335,000, from 328,000 the prior week.
As of (10:27 GMT+3), the dollar index traded around 81.06 after opening at 83.21; USDIX hit a high of 83.21 and a low of 80.84.
