Gold ticks up as China turbulence helps safe-haven demand

© Reuters. Gold ticks up amid safe-haven demand

Investing.com – Gold prices inched higher on Monday, as further turmoil in China’s stocks markets boosted demand for safer assets.

Chinese stocks markets on Monday, with the and the Index both closing down more than 5% despite efforts by Beijing to stabilize the market.

Last week, the Shanghai Composite lost all of its 2015 gains, falling by 10% in just five days.

for February delivery on the Comex division of the New York Mercantile Exchange tacked on 80 cents, or 0.07%, to trade at $ 1,098.70 a troy ounce as of 15:25 GMT, or 10:25AM ET. It earlier rose to a daily high of $ 1,108.30.

On Friday, gold prices jumped to $ 1,113.10, the most since November 4. The yellow metal gained $ 34.40, or 3.54%, last week, as safe-haven demand was boosted amid a global stock market rout, worries over the Chinese economy and heightened geopolitical tensions.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.3% to 98.75.

Demand for the dollar continued to be underpinned following Friday’s robust U.S. jobs report for December.

The U.S. economy added , after increasing an upwardly revised 252,000 in November. Economists had forecast payrolls to rise by 200,000. The at a seven-and-a-half year low of 5% in December.

The report bolstered expectations that the Federal Reserve could raise interest rates at a faster pace this year.

Also on the Comex, for March delivery inched up 5.7 cents, or 0.41%, to trade at $ 13.97 a troy ounce during morning hours in London.

Elsewhere in metals trading, sank to the lowest level since April 2009 on Monday, as steep declines on Chinese stock markets dampened appetite for the red metal.

Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation’s demand for the industrial metal will decline.

Last week, copper prices plunged 5.4 cents, or 5.13%, as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.

The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.

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Gold ticks up as China turbulence helps safe-haven demand