Gold Prices Rise Amid France Attacks
Gold prices gained in Asia on Monday in possible safe haven reaction to the deadly weekend attacks in Paris and on expectations for further monetary easing in China.
Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.98% to $1,091.50 a troy ounce on Friday.
Also on the Comex, silver futures for December delivery jumped 1.24% to $14.380 a troy ounce. while copper futures eased 0.21% to $2.158 a pound.
In Japan, quarter-on-quarter third quarter GDP fell 0.2%, compared to an expected 0.1% drop, while the year-on-year pace slumped 0.8%, compared to a 0.2% drop seen.
Earlier in New Zealand, retail sales quarter-on-quarter in the third quarter rose 1.6%, beating an expected 1.3% gain.
Elsewhere in metals trading, copper for December delivery dropped 0.4 cents, or 0.21%, on Friday to settle at $2.168 a pound. It earlier fell to $2.151, a level not seen since July 2009.
In the week ahead, investors will be turning their attention to Wednesday’s minutes of the Fed’s latest policy meeting for fresh indications on the prospects of a December rate hike.
Market players will also be looking ahead to U.S. data on inflation, building permits and manufacturing activity for further clues on the strength of the economy.
On Monday, the European Central Bank President Mario Draghi is to speak at an event in Madrid. The U.S. is to release data on manufacturing activity in the New York region.
Last week, gold prices ended the week near the lowest level since February 2010 on Friday, as investors cut holdings of the precious metal amid expectations the Federal Reserve will raise interest rates for the first time in nearly a decade next month.
Market players shrugged off weaker than expected U.S. retail sales and producer price inflation data on Friday, and instead focused on upbeat consumer sentiment figures.
On Thursday, gold fell to $1,073.00, the lowest level in almost six years, after a raft of Federal Reserve speakers suggested a December rate hike.
Gold prices have lost nearly 9% since mid-October as investors recalibrated their expectations of U.S. monetary policy in response to hawkish signals from the Fed.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.