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MTECHTIPS:- Gold futures decline amid global stock market rally

MTECHTIPS:- Gold futures decline amid global stock market rally

Gold futures declined on Tuesday, as sentiment was boosted amid a global stock market rally, despite grim trade data from China that caused further volatility in Asian markets. Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $2.40, or 0.21%, to trade at $1,119.00 a troy ounce during European morning hours. U.S. markets were closed on Monday for the Labor Day holiday. Data released earlier showed that China’s trade surplus widened to $60.2 billion last month from $43.0 billion in July, compared to estimates for a surplus of $48.2 billion. Chinese exports slumped 5.5% from a year earlier, compared to forecasts for a decline of 6.0%, while imports plunged 13.8%, far worse than expectations for a drop of 8.2%. Despite the weak data, the Shanghai Composite rallied more than 4.5% in the last hour of trade to erase the session’s losses and end up 3%. The upbeat sentiment carried over to European markets, where Germany’s DAX, France’s CAC 40 and London’s FTSE 100 were all up almost 2%. In the U.S., Wall Street pointed to strong gains at the open, with the Dow futures up 250 points. Gold prices also struggled amid ongoing uncertainty about whether the Federal Reserve will increase interest rates later this month when it meets on September 16-17. Friday’s U.S. jobs report failed to provide much clarity on when the U.S. central bank will decide to raise short term interest rates. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
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