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Gold Extends Rally as Aussie Gains Before China GDP

Written By Kontak Perkasa Futures on Monday, July 15, 2013 | 8:09 AM



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Bloomberg, (15/7) -- Gold extended its biggest weekly jump since 2011 and other precious metals rallied on prospects the U.S. will maintain monetary stimulus. The Australian and New Zealand dollars gained ahead of data economists project will show China’s economy slowed in the second quarter

Gold climbed 0.4 percent to $1,290.04 an ounce by 9:09 a.m. in Tokyo, while silver rose 0.5 percent and palladium and platinum gained. The so-called Aussie strengthened 0.2 percent after sliding to the weakest level since August 2010 July 12. The kiwi added 0.2 percent, trimming a 1 percent slump at the end of last week. The MSCI Asia Pacific Index of regional stocks rose 0.1 percent, with Japanese markets closed for a holiday. Futures on the Standard & Poor’s 500 Index added 0.1 percent after the gauge increased to a record July 12.

Federal Reserve Chairman Ben S. Bernanke said last week that the U.S. would need very accommodative monetary policy for the foreseeable future, bolstering gold’s allure as a store of value. China’s economy, the world’s second-largest, expanded 7.5 percent in the three months to June 30, according to the median of 45 estimates before data due today, after growth slowed to 7.7 percent in the first quarter. Finance Minister Lou Jiwei said July 12 that growth in 2013 may be below target, comments later corrected by the official Xinhua News Agency.

“A major focus is the China data, particularly for countries like Australia, as there’s no doubt the economy is losing momentum,” Mark Smith, a senior economist in Wellington at ANZ Bank New Zealand Ltd., the nation’s biggest lender, said by phone. “In terms of markets, people are still very focused on the Fed.”
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 8:09 AM
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