The prices of gold climbed higher on Tuesday, holding near the prior session’s four-week high, as a wave of risk aversion because of concerns growth in China and the rising tensions in the Middle East sparked demand metal.
Gold for February delivery on the Comex inched up $2.00, or 0.19%, to trade at $1,077.20 a troy ounce.
Spot gold was up 0.3 per cent at $1,077.60 an ounce after data showed Chinese factory activity contracted for a 10th straight month in Dec 2015.
A 7 percent slide in Chinese stocks on Monday unleashed weak economic data rekindled concerns about global growth in the first trading day in 2016, and sent to Europe and the United States reserves diving.
Chinese stocks were mixed on Tuesday in volatile trade, with indexes swinging in and out of negative territory, while European indices recovered.
One day earlier, prices rose to a session high of $ 1,083.00, the most since Dec. 9, before terminating at $ 1,075.20, up $ 15.00, or 1.41%, because investors reacting to a Saudi Arabia’s move to cut trade ties with Iran, fueling concerns over geopolitical turmoil in the Middle East.
Gold given new impetus after data showed that manufacturing activity with the US and China, the two largest economies in the world, both hired last month, reviving fears over the outlook for global growth.
Due to stress in Gulf countries, gold and silver prices have seen gained. MCX gold in the domestic market with a marginal gain of 0.1 per is trading around Rs 25 420.
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