Gold prices rise as yuan strengthens on China data
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More news: Gold prices gained on Friday as the US dollar eased against the yuan, after promising China economic data boosted recovery hopes in the world's biggest bullion buyer. Spot gold was up 0.3% at US$1,915.09 per ounce and US gold futures were up 0.2% to $1936.70. The yuan hit two-week highs against the dollar after data showed China factory output and retail sales in August beat forecasts.
China retail sales, factory output rise in positive signs for economy
The news: Fresh China data shows industrial output and retail sales grew at a faster pace in August, signalling that the country's economy may be stabilising, but the decline in property investment worsened.
The numbers: Industrial output, released on Friday by the National Bureau of Statistics (NBS), rose 4.5% in August from a year earlier, accelerating from the 3.7% pace seen in July. The growth marked the quickest pace since April.
Retail sales increased at a faster 4.6% pace in August aided by the summer travel season, and was the quickest growth since May. That compared with a 2.5% increase in July.
Property investment was down 19.1% year on year compared with a 17.8% slump the previous month, according to Reuters calculations.
The context: The upbeat data suggests a flurry of recent measures including property support policies to shore up a faltering economic recovery are starting to bear fruit. To sustain the recovery momentum, China's central bank said on Thursday it would cut the amount of cash banks must hold as reserves for the second time this year to boost liquidity. The bank also rolled over maturing medium-term policy loans to inject more liquidity into the financial system, while keeping the interest rate unchanged.
The source: Reuters
