Commodity News
HeadLine : Gold Edges Lower as Chinese Stimulus Hope Supports Risk Appetite
Date : Feb 18 2020
Gold prices were fractionally lower on Monday, largely unmoved by either virus-related concerns or by worse-than-expected growth numbers from Japan. In quiet trading subdued by the U.S. Presidents Day holiday, gold futures were down 0.1% from Friday’s close at $1,584.45 a troy ounce. The moves came against the backdrop of a jump in Chinese equity markets – echoed more weakly in Europe – after President Xi Jinping hinted at more stimulus measures to support the economy in an editorial over the weekend. The stronger tone in stocks capped gains in gold, despite further evidence of a spreading economic slowdown due to the virus: Thailand and Singapore both cut their growth forecasts for 2020, citing the impact of lower Chinese tourist arrivals. Meanwhile Japan, another favored destination for Chinese tourists, said its economy contracted more sharply than expected in the fourth quarter, at an annualized rate of 6.3%. That was much worse than the 3.7% contraction expected after the double-whammy in October of a sales tax hike and Typhoon Hagibis.

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