The gold price jumped higher to a six-week high during Asian trading hours on Friday as equity markets slumped and more weak data emerged from China.
Spot gold was last at $1,166/1,167 per ounce, up $11.5 on Thursday’s close. Trading ranged from $1,153.3-1,168.4 so far.
Asian bourses saw strong sell-offs in morning trading with the Shanghai composite index sliding 1.94 percent to 3,593.163 so far in the morning after US equities plunged overnight.
In data, the Chinese Caixin Flash manufacturing PMI out this morning was at a near six-and-a-half year low of 47.1 in August, signalling contraction. The figure is below market expectations of 52.1 and its July reading of 48.2.
A weaker US dollar and uncertainty over as US interest rate hike continued to prop up the gold price.
“Gold prices advanced to the highest level in the month as traders scaled back views on a US interest rate increase in September. The shift in stance was largely driven by the Fed’s remark that more evidence is required to support the view that the economy is strengthening,” said ANZ research in a morning note.
In other precious metals, silver was at $15.58/15.63 per ounce, up $0.07. Platinum was at $1,034/1,039, up $6, while palladium gained $6 to $621/626 so far on Friday morning.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 242.45 yuan per gram, while December silver was flat at 3,521 yuan per kilogram recently on Friday morning.
The post Gold marches to six-week high on equities slump, weak Chinese data appeared first on The Bullion Desk.
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