Gold prices recovered from a seven-month low on Monday, as the dollar traded below its recent highs and after sluggish GDP data from China weighed on Asian stocks. Spot gold was up 0.2% at $1,242.86 an ounce, after marking the lowest since Dec. 12 at $1,236.58 on Friday, Reuters reported. “The CNH (Chinese yuan traded offshore) is a bit stronger versus the dollar and that’s giving gold some support,” a Hong Kong-based trader said. The absence of increased rhetoric out of Beijing or Washington over the weekend likely gave the CNH a bit of reprieve, the trader said, adding that technically gold was under pressure and would still be sold on rallies toward $1,250. The dollar seesawed versus the Chinese yuan even as official data on Monday showed China’s GDP slowed in the second quarter as expected. Against a basket of six major currencies, the greenback traded below a 10-day peak. A weaker dollar makes greenback denominated gold cheaper for holders of other currencies. Gold prices, which can gain in times of political uncertainty, have failed to benefit from the ongoing trade dispute.
