FX:PRECIOUS METALS: Spot Gold Slips Amid China Growth Concerns
Spot gold is a touch lower in Europe Monday, reflecting a cautious tone in wider financial markets as concerns over Chinese economic growth persist.
At 0824 GMT, spot gold was down 0.3% at $1,747.84 a troy ounce. Spot silver was 0.6% lower at $33.250/oz.
"Chinese data over the weekend showing bank lending growth weaker than expected in September has likely prompted this morning's negative price action," said analysts at Australia & New Zealand Banking Group.
"Gold is likely to follow the general decline in commodity assets this week, as Chinese demand remains relatively weak ahead of the 6 Nov. National Congress and we get clarity on just how soft growth was in 3Q," they added.
Third-quarter gross domestic product data is due from China Thursday. As the world's top metals consumer, economic news and data from the region tend to be read for demand signals.
A firm dollar is also weighing on precious metals Monday. Since the metals are priced in dollars, their appeal to other currency-holders tends to be dented when the greenback strengthens.
"We do not expect to see a sustained rebound at the moment, while bullion continues to trade against the dollar," said Andrey Kryuchenkov, an analyst at VTB Capital.
In this regard, the relative strength of U.S. retail sales data and the Empire State manufacturing survey--both due for release Monday--could have a bearing on gold price direction later in the session, he added.
On a technical basis, gold is now trading just below support at $1,750/oz. Should a break below this level be sustained, losses are likely to escalate toward further support at $1,725/oz, said Mr. Kryuchenkov.
In other metals Monday, spot platinum was down 0.2% at $1,639/oz at 0824 GMT, and spot palladium was 1.2% higher at $637.30/oz.
Write to Francesca Freeman at francesca.freeman@dowjones.com
