Gold gains in Asia after solid China GDP, Korean tensions
Gold prices gained solidly on Monday as China GDP came in better than expected and tensions on the Korean peninsula supported demand.
Gold for June delivery on the Comex division of the New York Mercantile Exchange rose 0.35% to $1,293.00 a troy ounce, while silver futures were up 0.49% to $18.600 and copper futures gained 0.62% to $2.583 a pound.
China on Monday reported first quarter GDP rose 1.3% on the quarter compared to the same period a year ago for an annual pace of 6.9%, beating expectations for the year comparison. A poll of analysts says quarter-on-quarter up 1.6% and year-on-year GDP up 6.8%. China also reported industrial production rose 7.6% in March, compared to a 6.3% gain seen and retail sales gained 10.9% against a 9.6% rise seen.
Last week, gold prices traded higher on Thursday, as investors continued to back the precious metal amid geopolitical concerns while mostly upbeat economic data failed to weigh on sentiment.
Gold prices shrugged off upbeat economic data as investors continued to pour into safe haven assets such as gold amid concerns geopolitical tensions could escalate, as a U.S. carrier group sailed towards the Korean Peninsula.
The Labor Department said on Thursday, initial jobless claims fell by 1,000 to a 234,000 for the week ended April 8 while the producer price index for final demand slipped 0.1% last month.
The University of Michigan said its consumer sentiment index climbed to 98.0 in April, well above expectations of a fall to 96.5. A sharp recovery in the dollar failed to weigh on gold prices as geopolitical tensions remained front and center.
Dollar-denominated gold is sensitive to moves in the dollar – A rise in the dollar makes dollar-denominated assets such as gold, more expensive for holders of foreign currency and thus, reduces demand.