Gold prices were quoted higher in Asia on Monday as tension on the Korean peninsula support the precious metal and investors look ahead to China GDP figures for the first quarter for demand by the world’s second largest importer behind India.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last quoted up 0.58% to $1,296.50 a troy ounce, while silver futures were cited at $18.590 a troy ounce and copper futures at $2.570 a pound.
Ahead, China reports first quarter GDP with a 1.6% gain seen quarter-on-quarter and a 6.8% pace seen year-on-year. As well in China, industrial production for March is seen up 6.3% year-on-year and retail sales expected to post a 9.6% increase.
Last week, gold prices traded higher on Thursday, as investors continued to back the precious metal amid geopolitical concerns while mostly upbeat economic data failed to weigh on sentiment.
Gold prices shrugged off upbeat economic data as investors continued to pour into safe haven assets such as gold amid concerns geopolitical tensions could escalate, as a U.S. carrier group sailed towards the Korean Peninsula.
The Labor Department said on Thursday, initial jobless claims fell by 1,000 to a 234,000 for the week ended April 8 while the producer price index for final demand slipped 0.1% last month.
The University of Michigan said its consumer sentiment index climbed to 98.0 in April, well above expectations of a fall to 96.5.
A sharp recovery in the dollar failed to weigh on gold prices as geopolitical tensions remained front and center.
Dollar-denominated gold is sensitive to moves in the dollar – A rise in the dollar makes dollar-denominated assets such as gold, more expensive for holders of foreign currency and thus, reduces demand.