Gold Price Dips As Dollar Firms Up

January 21, 2019

London (Jan 21)  Gold prices dipped on Monday amid improved risk appetite as China GDP data came in line with estimates.

Spot gold dipped 0.20% to USD1,279.05 per ounce while US gold futures were down 0.34% at USD1,278.25 per ounce.

China's GDP grew a seasonally adjusted 1.5% sequentially in the fourth quarter of 2018, in line with expectations and down from 1.6% in the third quarter.

On an annualized basis, GDP expanded 6.4% - again matching forecasts and down from 6.5% in the three months prior amid pressure from faltering domestic demand and bruising US tariffs.

Growing signs of weakness in China fueled anxiety about risks to the world economy, but at the same time boosted expectations for more fiscal and monetary stimulus.

The dollar held near a two-week high, buoyed by hopes for a thaw in US-China trade tensions after an official familiar with the negotiations told Bloomberg that China would seek to reduce its trade surplus with the US by increasing annual goods imports by a combined value of more than USD1 trillion.


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