Article by ForexTime
Worries about a slowing Chinese economy, and in turn global growth, flared up last Friday after a survey showed a further deterioration in China’s manufacturing activity. There was a steep drop in the Chinese share market, which fell more than 7 percent on Monday.
Gold rose near its highest level in almost seven weeks on Monday these concerns over China led to safe haven flows into the precious metal.
Gold benefitted from market fears and is on track rally to $1,200 an ounce, a level last seen in June.
Spot gold traded at $1,160.80 an ounce by 0236 GMT, after touching a high of $1,165.11 in early trading.
Gold rose to as much as $1,168.40 on Friday, its highest since July 7. It gained more than 4 percent last week, the most since mid-January.
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Fears of a China-led global economic slowdown drove Wall Street to its steepest one-day drop in nearly four years on Friday, amid continued weakness in the Chinese manufacturing sector and its stock markets.
China’s major stock indexes collapsed more than 7 percent on Monday, with traders saying market disappointment over the lack of a liquidity move by the central bank during the weekend triggered a fresh selloff. Japanese equities fell over 3 percent.
That worry is spurring appetite for gold, which has now rebounded nearly 8 percent from a 5-1/2-year low of $1,077 reached in late July.
U.S. gold for December delivery was flat at $1,160.30 an ounce.
Article by ForexTime
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