By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — Gold prices were edging higher during East Asian Monday afternoon trade, with the metal benefitting from its safe-haven status amid a sharp sell-off in Asian stocks.
Comex gold for August GCQ2 +0.18% delivery was up 0.1%, or $2, to $1,581.00 per ounce.
Monday’s gains were modest compared to a $30.50 drop in Friday’s regular session on the Comex division of the New York Mercantile Exchange, which saw the metal to a weekly loss of 1.6%.
Asian stocks traded sharply lower Monday, reacting to negative U.S. jobs data Friday and Chinese price data suggesting a softer economy. Read more on Asia Markets.
China’s statistics bureau released data early Monday showing consumer price inflation eased to 2.2% for June, its lowest level in 29 months, while producer prices extended their slide into negatively territory, contracting 2.1%, steepening from May’s contraction in prices of 1.4%. Read more on Chinese inflation data.
HSBC’s analysts described the inflation data as “fast falling” and said they laid track for a shift to aggressive policy easing.
“Beijing policy makers are responding actively to hold up growth,” HSBC analysts said in the note.
In other precious-metals trade, silver for September delivery SIU2 +0.76% was also on a firming trend, rising 1%, or 26 cents, to $27.18 per ounce.
Silver tracked the sharp decline in gold prices in regular Comex trade Friday, shedding 2.4% for the week.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
