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Gold prices hold gains in Asia after China trade data disappoints

Published 11/07/2016, 09:54 PM
Updated 11/07/2016, 09:56 PM
© Reuters.  Gold holds gains in ASia
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Investing.com - Gold prices held gains on Tuesday in Asia in the wake of weaker than expected trade data from China and as cautious trade ruled ahead of the U.S. presidential election and note increased expectations of a Federal Reserve rate hike next month.

Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.35% to $1,283.85 a troy ounce.

Also on the Comex, silver futures for December delivery gained 0.40% to $18.223 a troy ounce. Copper futures however dropped 0.22% to $2.307 a pound. Copper futures have been well-supported in recent sessions as traders bet that the global economy may be gaining momentum after a long period of sluggish growth.

In China, the trade balance for October came in a surplus of $49.06 billion, narrower than the $51.07 billion seen as exports and imports missed expectations as well. China is the world's top buyer of copper and second largest gold importer.

Overnight, gold prices were sharply lower during North American hours on Monday, as demand for safe-haven assets ebbed after the FBI said no new evidence was found to warrant charges against Hillary Clinton in the investigation of her emails just two days before the U.S. election.

The news lifted a cloud over Clinton's presidential campaign and possibly blunted momentum for rival Donald Trump.

Markets have tended to see Clinton as the status quo candidate, and news favoring her bid often boosts risk appetite, while weighing on assets perceived as safe.

Prices rallied to a more than one-month high of $1,309.30 last week, as polls showed a tightening U.S. presidential race.

Meanwhile, markets are also expecting a Federal Reserve rate hike next month after a government report on Friday showed solid jobs gains and a rise in wages in October. Investors were pricing in a 78% chance of a rate increase in December, according to Investing.com's Fed Rate Monitor Tool.

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