Gold Lower As Chinese Trade Disappoints

Gold prices are moderately lower on a corrective, profit-taking pullback from recent gains that saw prices hit a six-week high Monday. A downbeat economic report out of China is also weighing on the marketplace Tuesday, including the precious metals. December Comex gold was last down $8.70 at $1,156.10 an ounce. December Comex silver was last down $0.139 at $15.73 an ounce.

Most world stock markets were seeing selling pressure as the U.S. day session gets underway Tuesday. Fresh economic news from China was downbeat for most markets, and especially the raw commodity sector and metals. Chinese imports were down 20.4% in September, year-on-year, compared with a 13.8% decrease in August. China exports were down 3.7% in September, year-on-year, following a 5.5% decline in August.

However, China’s Shanghai stock index did finish with slight gains on the day, on hopes for more China central bank monetary policy stimulus. The central bank announced a new lending program last weekend, in order to boost demand.

There was also a downbeat economic report coming out of the Euro zone Tuesday. The closely watched German ZEW economic expectations index came in at 1.9 in October versus 12.1 in September and expectations for a reading of 6.9.

U.S. economic data due for release Tuesday includes the NFIB small business index, the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the monthly Treasury budget statement.

Via Kitco News

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza