MW: Gold gains as China refrains from hiking rates
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) — Gold futures rose Monday after strong Chinese data was released and Chinese officials opted not to raise interest rates as many had anticipated, fuelling a relief rally.
Gold for February delivery (GCG11 1,397, +11.60, +0.84%) rose $11.20, or 0.8%, to $1,396.10 an ounce.
Silver for March delivery (SIH11 2,954, +93.00, +3.25%) rose 92 cents, or 3.2%, to $29.52 an ounce.
“The ongoing uncertainty over euro-zone debt, and increasing inflationary pressured in China create a positive environment to future bullion gain,” said James Moore, a research analyst at FastMarkets.
Data released on Saturday showed inflation up 5.1% on an annual basis in November, the fastest rise in two years. See more on Chinese data, stocks.
Gold had fallen 0.6% on Friday in expectation of a rate hike that didn’t come. Read more on Friday’s metals trading.
