July 13, 2012 / 10:04 AM / 8 years ago

PRECIOUS-Gold rises on equities, commods rallies, China data

* Stocks, commodities jump after Chinese growth data
    * Analysts see China's GDP raise monetary easing hopes
    * Gold posts biggest one-day rise in 3 weeks
    * Coming up: U.S. retail sales Monday

 (Adds details, updates market activity)
    By Frank Tang
    NEW YORK, July 13 (Reuters) - Gold rose about 1.5 percent on
F riday, boosted by sharp rallies in equities and commodities
after data showed that China's  economic growth, though slower,
was stronger than some had expected.
    Friday's rally was the largest one-day gain in three weeks,
and it lifted th e precious metal t o a weekly gain from the loss
column.
    China's growth rate slowed for a sixth successive quarter to
its weakest pace in more than three years, but some economists
had anticipated worse because of signs of a slowdown in the
United States and Europe.
    Bullion, which has been particularly sensitive to central
banks' monetary policies, also benefited from perceptions that
the Chinese GDP data could open the door for further easing.
    "It does indicate that the People's Bank of China has to
promote more liquidity via further rate cuts or potential fiscal
programs that make sure growth does not fall below these
levels," said Mark Luschini, chief investment strategist at
broker-dealer Janney Montgomery Scott, which has $54 billion in
assets.
    Spot gold rose 1. 2 percent at $1,5 8 9.6 3 an ounce by
2 : 42 p.m. EDT (18 4 2 GMT)
    U.S. gold futures for August delivery settled up
$26 . 7 0 an ounce at $1,592. The pace of trading was slightly
slower than usual, as volume was 20 percent below its 30-day
norm, p r eliminary Reuters data showed.
    China, considered an engine of the global economy, said its
year-on-year growth was 7.6 percent in the second quarter, below
the 8 percent level that in previous downturns has triggered a
robust response from policymakers. 
    A nearly 2 percent rally on Wall Street and sharp gains in
crude oil and grains amid a weaker dollar also lifted gold,
which has largely moved in tandem with perceived riskier assets
this year. 
    Gold held gains after data showed U.S. consumer sentiment
fell in early July to its lowest level in seven months, while
producer prices rose only slightly last month, suggesting
inflation pressures remain muted and leaving the door open for
more easing by the U.S. Federal Reserve. 
    
    INDIAN BUYERS RETREAT
    On the physical markets, gold traders in major consumer
India took to the sidelines on Friday as prices recovered, with
a weak rupee making the metal more expensive for local buyers.
Record local prices have weighed heavily on demand this year.  
    Holdings of gold-backed exchange-traded funds, which issue
securities backed by physical stocks of the metal, dropped for a
third session on Thursday. 
    The largest gold-backed ETF, SPDR Gold Trust, has seen
an outflow of nearly 10 tonnes so far in July.
    Among other precious metals, silver was up 0. 6 
percent at $27.32 an ounce, platinum was up 1.2 percent
at $1,425. 7 5 a n ounce, and spot palladium was up 1.3
p e rcent at $580.7 5 a n ounce.
    
 2:42 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold AUG   1592.00  26.70   1.7  1565.60 1596.50  113,691
 US Silver SEP  27.369  0.208   0.8   27.060  27.550   25,148
 US Plat OCT   1435.20  22.70   1.6  1414.70 1436.00    4,662
 US Pall SEP    585.65  10.85   1.9   577.90  586.00    2,166
                                                               
 Gold          1589.63  19.14   1.2  1566.60 1596.50         
 Silver         27.320  0.170   0.6   27.120  27.550
 Platinum      1425.75  16.35   1.2  1418.25 1429.75
 Palladium      580.75   7.22   1.3   579.93  583.25
                                                               
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        128,285   162,740   193,965     18.69   -0.93
 US Silver       26,788    58,754    57,341     30.97   -0.54
 US Platinum      4,740    11,455     9,114        23    0.00
 US Palladium     2,208     3,227     4,605                  
                                                               
 

 (Additional reporting by Jan Harvey in London; Editing by Alden
Bentley)
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