The gold price in Asian trading hours on Wednesday held above the $1,100 per ounce level as China’s sudden devaluation of its yuan against the dollar sparked currency war concerns.
Spot gold was last at $1,110.8/1,111.2, up $2.50 on Tuesday’s close. Trading had ranged at $1,102-1,113.3 so far.
People’s Bank of China on Tuesday devalued the yuan 1.9 percent against the dollar, raising concerns about possible currency tensions in Asia.
The threat of further competitive currency devaluation could prompt some renewed interest in gold, William Adams, FastMarkets head of research, had noted.
In data, the Japanese PPI – announced on Wednesday morning – stood at -3 percent. The figure was close to the market forecast of -2.9 percent, but lower from the previous month’s -2.4 percent.
Japan’s revised industrial production and tertiary industry activity, and China’s industrial production, fixed asset investment and retail sales data are due out later on Wednesday.
In equities, the Shanghai Stock Exchange Composite Index saw volatile trading on Wednesday morning, with the index down 0.13 percent to 3,922.97 so far.
In other precious metals, silver was down $0.11 to $15.17/15.22 per ounce. Platinum was at $980/985, up $3, while palladium was at $597/602, unchanged from the previous day’s close.
On the Shanghai Futures Exchange, gold for December was unchanged at 232 yuan per gram on Wednesday morning. December silver was so far unchanged as well at 3,419 yuan per kilogram.
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