Singapore - Gold climbed after data showed a further contraction in China’s manufacturing, adding to the case for haven assets as investors boost holdings.
Bullion for immediate delivery rose as much as 0.5% to $1 123.88 an ounce and traded at $1 122.88 at 3:44pm in Singapore, according to Bloomberg generic pricing. On Friday, prices capped a 5.4% monthly advance, with the metal holding gains even after the Bank of Japan adopted negative interest rates, boosting the dollar.
Gold has rallied this year as a global sell-off in equities spurred by concerns over the slowdown in China stoked demand. China’s official factory gauge signalled conditions deteriorated for a sixth month in January, missing economists’ expectations, while a separate measure from Caixin Media and Markit Economics also showed a shrinkage.