Reuters reported that slow growth in Chinese factory output increased hopes of monetary stimulus in China and led to a slight increase in gold prices.
As quoted in the market news:
“Gold and silver are a bit higher on expectation of more QE after the weaker Chinese data, and they are getting some technical buying as prices stay above $1,600,” said Phillip Streible, senior commodities broker at futures brokerage R.J. O’Brien.
Spot gold inched up 0.2 percent at $1,614.13 an ounce by 12:32 p.m. EDT (1632 GMT).
U.S. COMEX gold futures for December delivery were up $1.10 an ounce at $1,617.10, with volume so far sharply below its 30-day average, preliminary Reuters showed.