Gold Inches Higher After China Data

Gold prices inched higher on Monday amid growth worries after China posted its weakest quarterly GDP growth in at least 27 years.

Spot gold edged up 0.1 percent to $1,416.51 per ounce, while U.S. gold futures were up 0.4 percent at $1,418.15 an ounce.

Chinese GDP expanded 6.2 percent year-on-year in the second quarter, slower than the 6.4 percent growth registered a quarter ago. However, the economy grew 6.3 percent in the first half of the year, in line with expectations.

June factory output and retail sales figures showed signs of improvement, offering some respite to investors worried about slowing global growth.

Annual growth in industrial production advanced more-than-expected to 6.3 percent from 5 percent in May, showing the fastest growth in three months.

Likewise, retail sales grew at a faster pace of 9.8 percent after rising 8.6 percent a month ago. Economists had forecast an 8.5 percent increase for June.

Year-to-date fixed asset investment increased 5.8 percent compared to 5.6 percent expansion in January to May period while property investment logged a double-digit growth of 10.9 percent during January to June period.

The U.S. dollar edged higher against a basket of currencies, drawing support from a slight rise in U.S. Treasury yields.

The earnings season will kick off in the U.S. this week, with Citigroup, Goldman Sachs, Johnson & Johnson, JPMorgan, Wells Fargo, IBM, Netflix, Microsoft and American Express among the prominent companies due to report their quarterly results.

On the data front, investors will keep an eye on the latest batch of economic news, including reports on retail sales, industrial production, housing starts and homebuilder confidence.

The Federal Reserve is also scheduled to release its Beige Book, which may shed additional light on the near-term outlook for interest rates.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Gold Inches Higher After China Data

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