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MTECHTIPS:- Gold ticks up amid weak China PMI data, Fed rate hike possibility

MTECHTIPS:- Gold ticks up amid weak China PMI data, Fed rate hike possibility

Gold futures rose moderately on Tuesday amid a weaker dollar, as further indications of a weakening economy in China and the timing of a possible interest rate hike from the Federal Reserve remained in focus. Gold for December delivery traded in a range between $1,333.70 and $1,147.30 an ounce, before settling at $1,140.40, up 7.90 or 0.70% on the session. Following a four-day losing streak last week, gold futures have now closed higher in three of the last four sessions. The precious metal has gained approximately 4% in value over the last month of trading. Gold likely gained support at $1,108.50, the low from August 18 and was met with resistance at $1,169.80, the high from Aug. 24. In overnight trading, China’s official manufacturing purchasing index (PMI) slumped to a three-year low in August, falling to 49.7 from a reading of 50 in July. Any reading below 50 typically provides an indication that the sector is on the verge of suffering a recession. Separately, Caixin’s index of smaller factories in China plunged to a six-year low of 47.3 in August from 47.8 in July. The world’s second largest economy is on pace for its slowest expansion in nearly a decade, amid sharp decreases in exports and structural shifts in its productivity, capital and workforce. Also on Tuesday, Christine Lagarde, the head of the International Monetary Fund, expressed significant concern with the steep transition the Chinese economy faces in the coming months in her first public comments since the People’s Bank of China rattled global equity markets last week. Speaking in Jakarta, Lagarde cautioned investors on the spillover effects that could be created from persisting weakness in China’s economy

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