Reuters reported the 1.5% rise in the price of gold, due to the stronger than expected economic data from China causing sharp allies in equities and commodities. The largest one-day rise in three weeks brought the metal to an overall weekly gain.
As quoted in the press release:
Bullion, which has been particularly sensitive to central banks’ monetary policies, also benefited from perceptions that the Chinese GDP data could open the door for further easing.
Mark Luschini, chief investment strategist at broker-dealer Janney Montgomery Scott, commented:
It does indicate that the People’s Bank of China has to promote more liquidity via further rate cuts or potential fiscal programs that make sure growth does not fall below these levels.