Gold Prices Keep Sliding as China Slashes Growth Expectations
By Ross Tucker - 03/05/12 - 1:29 PM ESTTheStreet ) -- Gold prices continued to fall Monday after China slashed growth estimates to an eight-year low of 7.5%. Gold prices fell 3.5% last week, putting in the largest one-week decline since the week of December 18. The slide was continuing Monday. Gold for April delivery was falling $8.40 to $1,701.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,718 and as low as $1,694.40 an ounce, while the spot price was losing $9.20, according to Kitco's gold index. Silver prices were sinking 83 cents to $33.69 an ounce while the U.S. dollar index was falling 0.13% at $79.301.
In U.S. economic news, data on factory orders and non-manufacturing activity came in better-than expected. January factory orders fell 1% according to the Census Bureau. A slide of 1.6% was expected by analysts surveyed by Thomson Reuters. Meanwhile December's originally reported 1.1% jump in factory orders was upwardly revised to a 1.4% gain. The Institute for Supply Management's non-manufacturing index showed a much better than expected reading of 57.3 for February, up from 56.8 in January. Analysts polled by Thomson Reuters were forecasting a reading of 56 for last month. A report on global gold production has raised fears that supplies may be dwindling. A report from bullion dealer GoldCore noted that of the world's four largest gold producers, only China achieved gains. Australia, the U.S. and South Africa saw declines. This further suggest the possibility of peak gold production," said GoldCore. "Chinese gold is used in China to meet the rapidly growing demand for gold jewellery and coins and bars as stores of value." As a result, the balance between supply and demand is likely toremain tight. Mining stocks were following prices lower on Monday. Among the biggest losers were Great Panther Silver
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