Gold ends higher after last week's loss

2012-12-10 21:11:48 GMT2012-12-11 05:11:48(Beijing Time)  Xinhua English

CHICAGO, Dec. 10 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange settled higher Monday, recouping last week's loss, as investors mulled economic data from China and watched for news regarding the U.S. debt ceiling.

The most active gold contract for February delivery rose 8.9 dollars, or 0.52 percent, to settle at 1,714.4 dollars per ounce.

The gold prices finished higher last Friday, when traders confronted data giving contrasting signals on the U.S. economy, but lost 0.4 percent last week. Sunday saw Chinese data, including industrial production and retail sales, presenting a mostly positive picture of the Chinese economy to investors.

Market analysts say, investors were probably responding to China's stronger industrial-production number they saw over the weekend, suggesting the slowdown in economic activity there is perhaps not as bad as expected, which provides support to the trading.

According to data released over the weekend, China's November industrial output rose 10.1 percent, retail sales climbed 14.9 percent, and consumer prices index gained two percent from the same period a year earlier.

The U.S. dollar is likely to see renewed weakness on a likely limited resolution to U.S. fiscal cliff talks, as gold prices and the dollar often move inversely, some analysts say, while others expect very influential news to come from the U.S. Federal Reserve on more monetary stimulus this week.

Silver for March delivery rose 24.6 cents, or 0.74 percent, to close at 33.377 dollars per ounce.

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