Gold prices flat in Asia after reserve ratio cut by China
Gold was flat in early Asia after China at the weekend moved aggressively to ease monetary policy in the wake of data last week that pointed to lackluster economic performance by the standards of the Middle Kingdom.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 0.01% to USD 1,203.70 a troy ounce.
Elsewhere on the Comex, silver futures for May delivery gained 0.23% to USD 16.267 a troy ounce. Also in metals trading, copper for May delivery jumped 0.96% to USD 2.818a pound.
At the weekend, China's central bank announced over the weekend that it lowered the amount of deposits it requires banks to hold as reserves to 18.5% from 19.5% effective April 20 in a surprise decision.
The move came after official data showed that China’s economy grew 7.0% in the first quarter, the slowest pace of growth since the global financial crisis in 2008.
Data on industrial production, retail sales and fixed asset investment also fell short of forecasts, indicating that China needs to act to prevent a further slowdown in the economy. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Also on Monday, New Zealand reported that first quarter consumer prices fell 0.3% quarter-on-quarter, more than the 0.2% drop seen.
Last week, gold prices ended above the USD 1,200 level on Friday, as traders continued to mull the timing of a Federal Reserve rate hike to gauge the appeal of the precious metal.
The Labor Department reported Friday that US inflation edged up 0.2% last month, matching a similar gain in February. On YoY basis, consumer prices dipped 0.1% in March after remaining flat in February.
Source : ASIA GOLD