Gold gained in Asia on Monday on continued economic turmoil expected in China and a backdrop of tense Middle Eastern disputes between Iran and Saudi Arabia.Markets in Japan will be closed for a national holiday.Gold for February delivery on the Comex division of the New York Mercantile Exchange rose 0.80% to $1,106.70 a troy ounce.Also on the Comex, silver futures for March delivery gained 0.55% to $14.005 a troy ounce.Elsewhere in metals trading, copper for March delivery fell 0.21% to $2.010 a pound.In the week ahead, investors will continue to focus on economic reports out of China, with Wednesday’s trade data in the spotlight.The U.S. is to release data on retail sales, producer prices and consumer sentiment later in the week, while Thursday’s monetary policy meeting minutes from the Bank of England will also be in focus.Last week, gold prices retreated from a nine-week high on Friday, as the U.S. dollar strengthened after data showed the U.S. economy created much more jobs than expected in December.The Labor Department reported that the U.S. economy added 292,000 jobs last month, after increasing an upwardly revised 252,000 in November. Economists had forecast payrolls to rise by 200,000.
The unemployment rate held steady at a seven-and-a-half year low of 5% in December.The report bolstered expectations that the Federal Reserve could raise interest rates at a faster pace this year. Rising interest rates historically have been bad news for gold, which can't compete with the higher interest rates offered by other assets.Comex copper prices plunged 5.4 cents, or 5.13%, last week as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.While investors had expected the People's Bank of China to allow the yuan to fall further after last year’s 4.5% depreciation, the rapid pace of the devaluation has fueled fears that the world’s number two economy is growing even more slowly than expected.The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption. In the week ahead, investors will continue to focus on economic reports out of China, with Wednesday’s trade data in the spotlight.
The unemployment rate held steady at a seven-and-a-half year low of 5% in December.The report bolstered expectations that the Federal Reserve could raise interest rates at a faster pace this year. Rising interest rates historically have been bad news for gold, which can't compete with the higher interest rates offered by other assets.Comex copper prices plunged 5.4 cents, or 5.13%, last week as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.While investors had expected the People's Bank of China to allow the yuan to fall further after last year’s 4.5% depreciation, the rapid pace of the devaluation has fueled fears that the world’s number two economy is growing even more slowly than expected.The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption. In the week ahead, investors will continue to focus on economic reports out of China, with Wednesday’s trade data in the spotlight.
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