Gold prices rose for a fourth day in Asia on Monday after data throughout the region since the weekend that the investors noted mostly for a context of low interest rates, but also optimistic trends.
China announced a second interest rate cut within three months and the US reported a slower growth rate of the economy than expected.
The HSBC China final manufacturing index for February rose to 50.7 into the expansion zone and above the flash reading of 50.1.
The People’s Bank of China cut rates on loans and deposit interest rates by a quarter percentage point on Saturday. A day later, a meter factory in February marked the contraction for a second month, underscoring the necessity of a more lax policy.
Also at the weekend, February China Federation of Logistics and Purchasing (CFLP) manufacturing PMI improved for the first time in seven months, despite the Chinese New Year holiday but held to just below the 50 mark, indicating that the sector contracted for a second month. The index rose to 49.9 in February from 49.8 in January.
Spot Gold futures for immediate delivery rose as much as 0.8 percent to $1,223.34 an ounce, the highest since Feb. 17, before trading at $1,221.81 in Singapore.
On the Comex, gold futures for April delivery rose 0.63% to $1,220.70 a troy ounce.
The US expanded at an annual rate of 2.2 percent, compared to an estimated 2.6 percent, the DOC said Friday. Intake of bullion has from India could increase this month after the largest consumer industry expectations confused for a tax cut.
Last week, gold ended higher for the third consecutive day on Friday, as traders drove back expectations for the timing of the first rate hike US to comments by the President of the Federal Reserve Janet Yellen, early in the week.
Investors scaled back expectations of a rate hike mid-year after Fed chief Yellen said in testimony before the US Senate Banking Committee on Tuesday it was “unlikely” that economic conditions would justify a rate increase interest “at least a couple of FOMC meetings.”
Indian Rupee currency weakened on Monday versus the dollar, tracking losses in Asian currency market, plus equity benchmark Sensex gained 0.6% or 176.86 points to 29,538.36 points in pre-opening operations.
At the domestic market, gold has vigorous gained momentum. Nearly 1 percent stronger on MCX gold is trading around Rs 26,715.
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