Prices of gold futures fell substantially on Wednesday amid a slightly stronger than the US dollar as continued weakness in China and when to a possible interest rate hike by the Federal Reserve kept focused.
On the Comex, gold for delivery in December quoted in a range between $ 1163.60 and $ 1179.20 an ounce. However, the precious metal is up approximately 4.5% this month following the October opening near $ 1,120 an ounce.
In operations by night, the Shanghai Composite Stock Exchange dropped 104.65, or 3.06% to 3320.68, as the replicas of soft GDP data from beginning of the week continued to be felt. It was the biggest drop in Chinese equities in five weeks.
On Monday, the National Bureau of Statistics of China reported that GDP growth increased to 6.9% for the third quarter, representing their slowest rate in over six years. Analysts were expecting third trimester GDP growing at 6.8% for the period.
China is the world’s biggest gold producer and the second largest consumer of the precious metal after India.
Bullion investors expect the monetary policy meeting of the FOMC October the coming week for more clues on whether the US central bank may raise interest rates in the short term before the end of the year.
Similarly, at the Multi Commodity Exchange, gold for delivery in far-month February next year rose Rs 45, or 0.16%, to Rs 27,318 per 10 grams amid a firming trend overseas.
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