NEW YORK (MarketWatch) -- Gold futures edged higher Monday, as investors embraced more risk, lifting U.S. stocks and pressuring the dollar while boosting gold's investment appeal. Copper gained more than 1% after China estimated that its economy grew 9% in the third quarter.
Gold for December delivery, the most actively traded contract, rose $2.60, or 0.3%, to $1054.10 an ounce on the Comex division of the New York Mercantile Exchange. The thinly traded October contract also gained 0.3% to $1,053.50.
After a number of key corporate earnings helped lift stocks last week, investors cheered results from Hasbro and Eaton on Monday, ahead of key results from Apple and Texas Instruments (TXN 23.37, +0.62, +2.70%) .
The dollar, which has been used a safe haven currency, sank further, while the euro rose 0.2% to $1.4928. The dollar index lost 0.1% to 75.495. See Currencies.
A weaker dollar lifts the price of dollar-denominated commodities and lifts gold's appeal as safe asset.
Separately, December copper futures rose 3.15 cents, or 1.1%, to $2.877 a pound.
The 9% growth rate estimated by the research department of China's State Council would mark a sharp rise from growth of 7.9% in the second quarter and 7.1% over the first six months of the year, according to the official Xinhua news agency.
Official GDP data for the quarter are due out Thursday. China is the biggest consumer of many base metals, such as copper and aluminum. See full story.
"The Chinese seemed to be most bullish, as they see little evidence that demand for metal in the country is slowing, while supply is also becoming a problem," said Edward Meir, an analyst at MF Global.
China reported last week that its September copper imports rose to 399,052 metric tons, up 23% from a month ago. The country has imported 1.9 million metric tons of copper in the first three quarters, up 77% from a year ago.
Imports of iron ore also rose, up 30% from a month ago to 64.55 million metric tons in September. The country imported 469.36 million metric tons of iron ore in the first three quarters, up 35.7% from a year ago.
Holdings in SPDR Gold Trust , the biggest gold exchange-traded fund, stood at 1,109.31 metric tons, unchanged for an eighth session.
In other metals trading, January platinum, the most active contract of the metal, rose $10.60, or 0.8%, to $1,359.10 an ounce. December palladium added 75 cents, or 0.2%, to $331.40.
December silver rose 5 cents, or 0.3%, to $17.47 an ounce.
