Gold prices rise

BENGALURU. — Gold prices rose yesterday as the US dollar pared early gains and equities plunged on Chinese trade data that stoked concern about the health of the world’s second-biggest economy.

The climb in bullion came despite signals from the US Federal Reserve minutes that the central bank could raise interest rates in December.

Spot gold was up 0,5 percent at $1 260,34 per ounce by 4.05am GMT, its best one-day gain in three weeks. US gold futures advanced 0,6 percent to $1 261,30 per ounce.

“Despite the [Federal open market committee] minutes that were released overnight, gold prices didn’t really move. This strongly suggests that gold prices at this juncture, of $1 250, have already digested the probability of a rate hike around this year,” said OCBC Bank analyst Barnabas Gan.

Several voting Federal Reserve policy makers judged a rate hike would be warranted “relatively soon” if the US economy continued to strengthen but doubts on inflation remained, according to the minutes of the Fed’s September policy meeting released on Wednesday.

Gan added that various challenges to the global economy would buoy safe-haven demand for bullion, with the metal likely to touch $1 300 by year-end.

Asian stocks stumbled to three-week lows and US stock futures and treasury yields fell after China’s September trade data showed a sharp decline in exports.