Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.1% to close above $1,089 as China's weak GDP stirred hopes for additional stimulus, boosting European and Asian equities and reducing global demand for safe havens.

China's economy expanded at the weakest pace in 25 years in 2015, official data revealed today, signaling, with GDP rising 6.8% during the fourth quarter and 6.9% for the year. With growing consumer and corporate debt, surplus of housing, and excess factory capacity in the face of slowing global demand, the prospects for 2016 appear to be similarly weak.

The IMF lowered its global growth forecast again, warning that China's economic turmoil may create financial contagion in emerging markets.

With traders in Asian and European markets speculating that the weak Chinese data will trigger substantial new stimulus measures from the PBOC, equity markets rallied sharply in those regions. The FTSE Index gained 1.7% while the Asia Dow added 1.1% and the Shanghai Composite Index surged more than 3.2%.

U.S. equities retreated alongside falling oil prices, with the Dow dropping 0.5% and the S&P 500 down 0.75%.

The dollar weakened 0.2% against a basket of rivals, limiting gold's slide. A falling dollar typically supports commodities denominated in it for interntaionla trade by making them oless expensive overseas.

The other precious metals were higher for the day, with silver gained 1.6% while platinum and palladium added 0.3% and 2%, respectively.

At the Comex close: February gold slipped $1.60 to $1,089.10; March silver gained 23 cents to $14.12; April platinum added $2.80, to $830.30; and March palladium jumped $9.85 to $496.90 an ounce.