Gold prices rebound in Asia ahead of China Q3 GDP
Singapore (Oct 21) Gold prices gained in Asia on Tuesday, rebounding from downbeat news from Europe overnight and looking ahead to key China economy data.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,247.20 a troy ounce, up 0.20%, after hitting an overnight session low of $1,235.00 and off a high of $1,249.00.
At 0200 GMT, China is expected to release third quarter GDP data, with a gain of 7.3% forecast year-on-year, as well as industrial output for September, seen up 7.5% on year, and September retail sales, expected to have gained 11.8%.
Overnight, gold futures moved higher after slumping European stocks sparked safe-haven demand for the precious metal.
European stocks fell on Monday after German business software maker SAP cut its 2014 operating profit forecasts, which bolstered gold's appeal as a safe haven during times of market turmoil.
Germany's Bundesbank reported earlier the country's economy barely grew in the third quarter, as industrial output slowed and business sentiment deteriorated.
In its monthly report the German central bank said that while the euro zone's largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
A weaker dollar boosted gold futures as well.
The dollar softened against many major currencies earlier on concerns that even though the Federal Reserve is seen closing its monthly bond-buying program next week, rate hikes may come later in 2015 than once anticipated to make sure cooling European and Asian economies won't dampen U.S. recovery.
Silver for December delivery was up 0.34% at $17.413 a troy ounce. Copper futures for December delivery were up 0.05% at $2.988 a pound.