Gold rises to highest level in a month as China data add to growth jitters

Gold rises to highest level in a month as China data add to growth jitters

Gold prices climbed and US stocks slipped on Monday as worries over a weakening global economy were heightened by signs that coronavirus lockdowns had clouded the outlook for growth in China.

The yellow metal, which typically advances during periods of uncertainty, rose about 0.8 per cent to $1,989 a troy ounce, reaching its highest level in more than a month.

US stocks dipped on Monday, with the blue-chip S&P 500 index down 0.3 per cent in afternoon action, while the Nasdaq Composite shed 0.6 per cent in thin trading as markets reopened from the long weekend. Trading volumes in stocks in the S&P 500 were about 20 per cent below recent averages, according to Bloomberg data.

A broad MSCI index of equities markets in the Asia-Pacific region dropped 1.1 per cent, its second consecutive day of declines. Big European markets were closed for the Easter Monday holiday.

In government bond markets, the yield on the 10-year Treasury gained 0.06 percentage points to 2.87 per cent. Yields move inversely to price.

The cautious start to the trading week followed China’s release of a flurry of economic data. Gross domestic product rose 4.8 per cent in the first three months of 2022 compared with the same period