November 28, 2023
Gold closes high, cautiously following data from China and the US

Gold closes high, cautiously following data from China and the US

The highly liquid gold deal rose on Monday, the 16th, amid a high search for the safety of the precious metal, following economic data indicating a recession in China and the United States.

On the New York Mercantile Exchange (Nymex) metal division Comex, today’s session ended with a gain of 0.65%, or $ 1,789.80 a troy ounce, of gold distributed in December.

Overnight, investments in industrial production, retail and real estate in China recorded lower-than-expected growth in markets.

In the United States, the Empire State Industrial Performance Index, which measures production conditions in New York State, fell to 18.3 in August from 43 in July, according to a survey released by the Federal District of New York. Reserve (Fed, Central Bank of the United States).

“Disappointing economic data from China and a sluggish U.S. industry survey in August further sharpened 10-year treasury yields after a sharp fall on Friday,” said Michael Husson, chief market analyst at CMC Markets UK. This helped lift the price of gold due to concerns about a weak growth outlook, ”he concluded.

According to Onda analyst Craig Erlam, US consumer sentiment index data on Friday “is particularly good for gold as the US sends yields and the dollar depreciates sharply”.

According to Commercebank, “US consumer sentiment turned gloomy in August – leading to sharp price rises”, one of the fears raised by inflation. The indicator has had its lowest end in almost a decade.

However, “I do not think its fortunes would have improved drastically if it had not been for the first time in America’s list of shocking economic numbers,” says Erlam Gold. “It will be difficult to break the $ 1,800, and it will not help by any means to pull back 50% from the beginning of June to the minimum of August,” he scolds.

* With information from Dow Jones Newswire.