Gold declined as stocks in Asia rose after data on China’s economy pointed to an improvement, curbing demand for havens. Investors were also assessing the latest on the trade front, with the Global Times reporting that China’s government wants tariffs to be rolled back as part of the phase one trade deal with the U.S.
A gauge of China’s manufacturing sector jumped unexpectedly in November, signaling a recovery in activity amid government support and stabilizing global growth. The official manufacturing purchasing managers’ index rose to 50.2, according to data released by the National Bureau of Statistics on Saturday, the first reading above 50 since April, which indicates an expansion in output.
Still, optimism was tempered somewhat after China’s central bank governor Yi Gang sounded a cautious tone on the health of the global economy, while signaling that monetary policy makers will continue to refrain from large-scale easing steps.
Spot gold as much as -0.3% to $1,460.07/oz, and was at $1,461.36 at 8:56am in Singapore.
Source : Bloomberg