Gold Futures Decline
World Economy

Gold Futures Decline

Gold futures declined on Tuesday, as sentiment was boosted amid a global stock market rally, despite grim trade data from China that caused further volatility in Asian markets.
Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $2.40, or 0.21%, to trade at $1,119.00 a troy ounce during European morning hours. US markets were closed on Monday for the Labor Day holiday, Investing.com reported.
Data released earlier showed that China’s trade surplus widened to $60.2 billion last month from $43.0 billion in July, compared to estimates for a surplus of $48.2 billion.
Chinese exports slumped 5.5% from a year earlier, compared to forecasts for a decline of 6.0%, while imports plunged 13.8%, far worse than expectations for a drop of 8.2%.
Despite the weak data, the Shanghai Composite rallied more than 4.5% in the last hour of trade to erase the session’s losses and end up 3%. The upbeat sentiment carried over to European markets, where Germany’s DAX, France’sCAC 40 and London’s FTSE 100 were all up almost 2%.
In the US, Wall Street pointed to strong gains at the open, with the Dow futures up 250 points.
Gold prices also struggled amid ongoing uncertainty about whether the Federal Reserve will increase interest rates later this month when it meets on September 16-17.
Friday’s US jobs report failed to provide much clarity on when the US central bank will decide to raise short term interest rates. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates in September for the first time since 2006.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange rallied 6.6 cents, or 2.87%, to trade at $2.378 a pound.
Copper’s gains came as a sharp rebound in Chinese equity markets helped soothe investors’ tattered nerves.
China’s copper arrivals in August totaled 350,000 metric tons, little changed from a month earlier, indicating that demand for the red metal held up last month despite recent market turmoil.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Short URL : https://goo.gl/iyFLkh
  1. https://goo.gl/I5TnI9
  • https://goo.gl/ZqYL4d
  • https://goo.gl/4ssEFc
  • https://goo.gl/nb6iDG
  • https://goo.gl/fDnD9k

You can also read ...

Capital Economics forecasts Turkey’s GDP growth will fall to 3.5% in 2018 from 7.4% in 2017.
Expectations for Turkey's end-2018 inflation rate rose from 12...
Trump Tactics Sabotaging US Economy, Markets
Wall Street could be making a costly mistake. According to...
File photo of finance ministers and central bankers from the G20 nations.
Global economic growth is poised to pick up this year, though...
Apple Watch Smells Losses
The latest round of US tariffs on $200 billion of Chinese...
Italian Bonds, Stocks Fall
Italian bond yields rose and equities sold off on Friday after...
Moody’s Warns Philippines of Downside Risk
Debt watcher Moody’s Investors Service on Friday said the...
Technology Can Help Workers From the Informality Trap
Technology and what it will do to change how people work is...
A weaker yuan remains a source of risk for global currency markets.
The Chinese yuan slid to its lowest in more than a year on...