European stock markets opened slightly lower on Monday, as investors digested lackluster data from China, but also found support in an upbeat trading day in Japan. Data out over the weekend from China showed export growth slumped unexpectedly and inflation grew a slower-than-expected pace in May.
The Stoxx Europe 600 index was slightly lower at 295.31. The U.K.'s FTSE 100 index dropped 0.3% to 6,391.61. France's CAC 40 index fell 0.1% to 3,867.23, while Germany's DAX 30 index inched 0.2% higher to 8,267.58.
August dated gold futures are trading $5.1 at $ 1377.9 per ounce on COMEX division of New York Mercantile Exchange. Earlier in the session, gold prices rose due to buying from China.
Demand for gold in China, the second-biggest bullion buyer after India, has grown since prices touched a two-year low around $1,320 an ounce in April, with tight supply pushing premiums to record highs.
On Friday, the US added more jobs in May than in April, denting hopes for prolonged stimulus and weighing on gold’s appeal as a hedge against inflation.
Philadelphia Fed president Charles Plosser said on Friday the jobs report showed government spending cuts had so far not been as damaging as some feared and that the central bank should reduce its bond buying "now". However, he is in the minority of the Fed’s 19 policy makers, with most appearing to still support bond-buying at current levels.
MCX August bullion futures are trading up nearly Rs 60 at Rs 27638 per 10 grams. A fall below Rs 27570 may take it further lower near Rs 27500-450 levels.
Source by Commodity Insights
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