Gold holds near $1,280 amid shaky global outlook


52 0
Gold steadied near $1,280 an ounce on Monday, after posting its biggest monthly gain in three years, as a shaky outlook for the global economy preserved bullion’s safe-haven draw.

Weekend data showed China’s factory sector shrinking in January for the first time since 2012. This report came shortly after Friday’s US gross domestic product number that marked a sharp slowdown in the fourth quarter.

Spot gold was off 0.3 per cent at $1,279.18 an ounce by 0240 GMT after rising 2 percent on Friday. It ended January with a gain of 8.4 per cent, its largest monthly increase since January 2012.

US economic growth slowed to a 2.6 percent annual pace from a 5 percent rate in the third quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006.

China’s factory sector unexpectedly shrank for the first time in nearly 2-1/2 years in January and firms see more gloom ahead, raising expectations that policymakers will take more action to forestall a sharper slowdown.

Gold’s firm tone is also backed by strong inflows into exchange-traded funds.

Holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, stood at 24.4 million ounces as of Thursday, the highest since mid-October.
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock