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(PhotoChina Daily) |
Domestic gold futures rose in anticipation of additional stimulus from the Chinese central bank following the release of disappointing trade data for July last week.
The most traded gold contract on the Shanghai Futures Exchange (SHFE) advanced 0.60 percent from Friday's closing price to finish trading at 336.02 yuan ($52.80) per gram, or $1642.33 per ounce.
"The increased risks of Chinese stimulus and hopes of pump priming elsewhere in the world added to gold's appeal," commodities analysts from the Australian bank ANZ said in a note early Monday.
China's monthly trade data came in weaker than expected last week with export growth slowing to an annual rate of 1 percent in July, down from 11.3 percent in June; while import growth downshifted to 4.7 percent year-on-year, down from 6.3 percent.
Meanwhile, rising grain prices due to the US drought sparked concern about increased inflation, which also supported gold, according to ANZ analysts.
The most active Comex gold future was trading at $1,626.20 per ounce when the Chinese mainland markets closed Monday, up 0.2 percent.
Gold prices typically rise along with expectations of inflation as the market anticipates that at least some investors will buy the precious metal to offset currency depreciation.
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