SINGAPORE. Gold rose the most in seven sessions on Tuesday, after breaking through a key technical level and as China inflation data boosted its appeal as a hedge against rising prices in the world’s second-biggest buyer of the metal.
Bullion, down nearly 30 percent for the year, came under renewed pressure late last week as a strong US jobs report raised fears of an early end to the US Federal Reserve’s bond buying which has been seen as stoking inflation.
But it has now extended gains into a second day, as the dollar eased from three-year highs and on some bargain-hunting.
Data on Tuesday that showed China’s annual consumer inflation accelerated more than expected in June also helped. “The increase in Chinese inflation rates could see further appreciation around gold demand in China, which already appears to be persisting at elevated levels versus 2012,” Nomura analysts wrote in a note.
“Rising inflation should hamper significant easing responses which should see this trend for enhanced Chinese gold demand continue.”
Spot gold had risen 1.5 percent to $1,254.91 an ounce by 0728 GMT, after climbing to $1,260.01 earlier.
courtesy of thenews.com.pk
Bullion, down nearly 30 percent for the year, came under renewed pressure late last week as a strong US jobs report raised fears of an early end to the US Federal Reserve’s bond buying which has been seen as stoking inflation.
But it has now extended gains into a second day, as the dollar eased from three-year highs and on some bargain-hunting.
Data on Tuesday that showed China’s annual consumer inflation accelerated more than expected in June also helped. “The increase in Chinese inflation rates could see further appreciation around gold demand in China, which already appears to be persisting at elevated levels versus 2012,” Nomura analysts wrote in a note.
“Rising inflation should hamper significant easing responses which should see this trend for enhanced Chinese gold demand continue.”
Spot gold had risen 1.5 percent to $1,254.91 an ounce by 0728 GMT, after climbing to $1,260.01 earlier.
courtesy of thenews.com.pk
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