Gold prices bounced back on Monday with the market inching towards last session’s nine-week high as pressure on Asian stock markets triggered safe-haven bids for the metal.
Spot gold rose 0.3 percent to $1,106.9 an ounce by 0045 GMT. U.S. gold gained 0.8 percent to $1,107.
Gold climbed to its highest since early November on Friday, adding more than 4 percent to its value this year, as concerns over the Chinese economy and tumbling stock markets boosted the safe-haven appeal of the precious metal.
Perceived missteps by China’s authorities in controlling their share market and currency have led to concerns Beijing might lose its grip on economic policy too.
China will face great difficulty in achieving economic growth above 6.5 percent over the 2016-2020 period due to slowing global demand and rising labour costs at home, the China Securities Journal quoted a top state adviser as saying.
Investment appetite for bullion showed signs of picking up last week. Holdings of the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 4.2 tonnes on Thursday, data from the fund showed.
Bullion is often seen as an alternative investment during times of financial uncertainty, although safe-haven rallies tend to be short-lived.
Gold slid 10 percent last year on fears higher U.S. rates would lower demand for the non-interest-paying asset, while boosting the dollar. A stronger greenback makes dollar-denominated gold costlier for holders of other currencies.
Silver was up 0.6 percent at $14.016 an ounce, while platinum lost 0.8 percent at $869.74 an ounce. Palladium was down 1.9 percent to $484.5 an ounce.