Gold recovers from session lows and ends little lower
Bullion prices ended the U.S. day session mixed on Tuesday, 19 January 2016 at Comex on some profit taking. The yellow metal's price did finish up from the session low on some bargain hunting and as the U.S. dollar index backed down from its daily high.
February Comex gold was last down $1.30 at $1,089.30 an ounce. March Comex silver was last up $0.219 at $14.115 an ounce.
Economic data from China on Tuesday showed the world's second-largest economy had a gross domestic product growth rate of 6.9% in 2015, which was higher than market had expected but still the slowest growth rate in China in around 25 years. Most world stock markets were boosted on the China news.
There was more downbeat economic data coming out of the European Union on Tuesday. Euro zone consumer price inflation was pegged at zero percent in December, month-on-month, and up 0.2% year-on-year. Also, the closely watched German ZEW economic expectations index fell to 10.2 in January from 16.1 in December. However, the January reading was higher than expectations.
The IMF on Tuesday cut its global economic growth forecast number, citing slowing growth in China and concerns about emerging market financial contagion. The IMF pegged 2016 world economic growth at 3.4%, down 0.2% from its last estimate.
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The other key outside market crude oil is dropped to a 12-year low of $28.36 a barrel today. The International Energy Agency said oil prices could fall further this year due to the major glut of oil in the world market. The IEA said there is more than 1 million barrels a day of supply over demand being added to world oil stockpiles.
U.S. economic data released Tuesday was light and included the NAHB housing market index and Treasury international capital data. These reports had no market impact.
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