Gold reports losses as China data beats estimates
|- Gold is shedding 0.28% at press time amid a risk-on rally in stocks.
- China's NBS and Caixin PMIs for November bettered estimates.
- The upbeat data is likely pushing the anti-risk gold lower.
Gold is flashing red in Asia, as stocks are gaining ground, possibly on the back of upbeat China data.
At press time, the anti-risk yellow metal is trading at session lows near $1,460, representing a 0.28% decline on the day.
Meanwhile, the futures on the S&P 500 are reporting a 0.30% gain. Japan's benchmark equity index Nikkei is currently up 1.13% and the Shanghai Composite is adding 0.48%. Indices in Australia, New Zealand, South Korea, and Hong Kong are also flashing green.
The risk-on action could be associated with the upbeat China data released in the last 48 hours.
The purchasing managers' index (PMI) for China's manufacturing sector ticked higher to 50.2 in November from 49.3 in October, the National Bureau of Statistics (NBS) said Saturday. That is the first above-50 reading in 13 months.
Further, the Caixin PMI, which focuses on the small and medium-sized export-oriented units, jumped to 51.8 in November from 51.7 in the previous month, marking the fastest expansion since December 2016.
Looking forward, investors may continue to offer gold in response to the signs of a turnaround in the world's second-largest economy. The yellow metal, however, could find a floor if the newsflow related to US-China trade negotiations is negative.
Reports hit the wires earlier today citing sources with direct knowledge of the trade talks on Saturday, as saying that “the US must remove existing tariffs, not planned tariffs, as part of the deal.
Technical levels
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