Tuesday, June 11, 2013

THE RICHEST| Gold rises on weaker Chinese economic data

CHICAGO -- Gold futures on the COMEX division of the New York Mercantile Exchange roseslightly on weaker-than- expected Chinese economic data Monday. 

The most active gold contract for August delivery rose $3, or 0.22 percent, to settle at $1,386per ounce.

Chinese government released a series of economic data over the weekend: China's producerprice index fell 2.9 percent in May from a year earlier, quicker than a 2.6 percent decline inApril year on year; total social financing dropped by about a third to 1.19 trillion yuan ($194billion=) in May from April; total property investment in China in the first five months of this yearrose 20.6 percent to 2.68 trillion yuan, compared with a 21.1 percent rise in the first fourmonths; fixed-asset investment in non-rural areas rose 20.4 percent in the January-May periodyear on year, slower than the 20.6 percent increase recorded in the January-April period;value-added industrial output in China rose 9.2 percent in May year on year, slowing slightlyfrom a 9.3 percent increase in April; and exports rose 1 percent in May from a year earlier,much slower than April's increase of 14.7 percent. Disappointing Chinese economic figureswere nevertheless positive to gold prices.

Gold market is still waiting for directions, which will hinge heavily on when the US FederalReserve will scale down its bond- purchase program.

Though the underlying physical demand for gold remains strong, gold prices have registered a17-percent decline so far this year.

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