Gold soared for a second straight session on Monday, as the release of downbeat data from China enhanced some safety demand on the metal.
The precious metal climbed to a high of $1123.98 an ounce this week, while currently trading around $1121.70.
Data released from China showed a widening contraction to 49.4 in January from 49.7 in December, lower than forecasts of 49.6. The reading recorded the sixth-straight month of contraction and the lowest level since August 2012.
The Caixin manufacturing PMI showed slight improvement, but remained in contraction, while the services sector growth eased to 53.5.
Accordingly, the Shanghai Composite Index slipped 1.78 percent to 2,688.85, but the rest of Asian shares advanced on monetary easing by the BoJ.
Since the beginning of the year, gold has been benefitting mainly from safety demand amid the sharp sell off in equities, fall in oil prices and persisting worries from China.
Last week, gold finished higher to post its strongest monthly climb in a year.
Probably, the yellow metal will get some support from physical demand this week, ahead of the Luna New Year that starts on February 7.
US jobs report
Eyes will focus this week on the U.S. jobs report, given the fact that any change in the Fed’s monetary stance depends on the progress or deterioration in the labor market.
American employers probably added 192,000 jobs last month, while unemployment rate lingered at its record low of 5.0 percent, according to median forecasts.
The Federal Reserve said last week it was closely monitoring the latest global developments to assess its impact on the U.S. labor market and inflation.
Following its strong comeback on Friday, the dollar index retreated today to 99.45, compared to the session’s opening at 99.71.
