Gold prices went up by 0.3% on Friday, reaching around $2,380. This increase was mostly because of positive economic news from China, the biggest gold market in the world. The good data made people more confident about gold, causing price to rise a little.
Positive News from China Boosts Gold Prices
On Friday, gold price rose a bit thanks to strong economic numbers from China. With gold priced at about $2,380, the good news helped improve the market’s outlook. Since China’s economy is important for gold price, good news from there often leads to higher prices.
Mixed US Reports, But Gold Stays Strong
Even with mixed reports from the United States, gold price still increased by 0.3%. The main reason for this rise was the strong data from China. US economic reports did not affect gold price much, and they remained steady at $2,380.
China’s Economy Grows Faster Than Expected
China’s economy grew faster than many people thought in April. Industrial production increased by 6.7% compared to last year, beating the expected growth of 5.5%. This was also better than the previous month’s growth of 4.5%. This surprising news helped push gold prices higher.
Experts Cautious About China’s Growth
Despite the good news, some experts are worried about China’s economy. Tommy Wu, an economist at Commerzbank, noted that while production and exports are doing well, spending by consumers is low. This means China’s growth may not be steady.
China’s Government Increases Spending
To help the economy, China’s government is spending more money, including selling bonds. They are also trying to help the housing market by supporting local governments to buy unsold homes. The People’s Bank of China has made it easier for first-time homebuyers by lowering the down payment needed.
US Tariffs Have Little Impact on China
US tariffs on electric cars and solar panels from China are not expected to hurt China’s economy much. Since China doesn’t send many electric cars to the US and sells most solar panels through other countries, the impact of these tariffs will likely be small.
Gold Prices Following an Upward Trend
Gold prices are on an upward trend but slowed down near the $2,400 mark. There was a small dip as prices got close to this level, but experts believe gold could still rise. If prices go above $2,400, the next targets would be $2,417 and $2,430.
Conclusion
Gold prices are rising thanks to strong news from China, even though US data is mixed. If gold prices break the $2,400 level, they could continue to climb.
For more updates on gold, visit Daily Gold Updates and learn more about trends at Daily Gold Signal.
