Home / TIPS / MTECHTIPS:-Gold tumbles nearly 1%, amid subdued China GDP for the third quarter

MTECHTIPS:-Gold tumbles nearly 1%, amid subdued China GDP for the third quarter

 Gold futures tumbled by nearly 1% on Monday falling precipitously from three-month highs reached late last week, after quarterly GDP growth in China slumped below 7% for the first time since the height of the Financial Crisis. On the Comex division of the New York Mercantile Exchange, gold for December delivery traded in a tight range between $1,169.00 and $1,178.00, before settling at $1,171.90, down 11.50 or 0.97% on the session. Last week, the precious metal surged to a fresh three-month high at $1,189.00 an ounce during a five-day winning streak. Despite Monday’s sell-off, gold is still up approximately 3% over the last month of trading. Gold likely gained support at $1,151.60, the low from October 9 and was met with resistance at $1,189.00, the high from Oct. 14. On Monday, China’s National Bureau of Statistics reported that GDP growth grew at 6.9% for the third quarter, decelerating at the slowest pace in more than six years. It marks the slowest period of growth in the world’s second-largest economy since the first quarter of 2009 when Chinese GDP rose by 6.2%. Analysts expected third quarter GDP in China to rise by 6.8% for the three-month period ending in September. The dismal reading could add pressure on the People’s Bank of China to introduce fresh stimulus measures following its shocking devaluation of the yuan in August. The subdued growth also exacerbates concerns that the PBOC could adjust its benchmark interest rate, while pushing lending rates down even further.

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