The gold price edged slightly lower in Asian trading hours after China lifted the yuan against the dollar for the first time on Friday following three consecutive days of cuts. The gold price, however, continued to trade above the $1,100 psychological level as uncertainties remained over China’s economic health.
Spot gold was last at $1,113.7/1,113.9 per ounce, down $1 on Thursday’s close. Trading ranged at $1,112.5-1,116 so far.
The People’s Central Bank of China fixed the daily reference rate at 6.3975 yuan against the dollar on Friday morning, up 0.05 percent from 6.4010 the previous day.
Fears over a prolonged yuan devaluation was allayed following the latest yuan hike. Beijing had cut its yuan guidance rate by 4.6 percent in over Tuesday-Thursday, but had assured that the devaluation was a one-off adjustment, and that it expects a stable currency with no reason for further depreciation.
In equities, the Shanghai composite index was up 0.69 percent to 3,982.04 so far on Friday morning.
The market will look to various data releases later on Friday, these including the quarterly preliminary GDP figures from France, Germany and Italy, and also PPI and preliminary consumer sentiment from the US.
In other precious metals, silver was at $15.39/15.44 per ounce, up $0.05. Platinum was at $985/990, down $1, while palladium was unchanged at $611/616.
On the Shanghai Futures Exchange, gold for December was flat at 231.8 yuan per gram, while December silver was last at 3,491 yuan per kilogram, also unchanged.
The post Gold edges lower as China lifts yuan appeared first on The Bullion Desk.
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