Asian demand heightens gold's appeal

GOLD has recovered from the biggest drop in six weeks, as China and the US are showing signs of slowing economic growth.
Asian demand heightens gold's appeal Asian demand heightens gold's appeal Asian demand heightens gold's appeal Asian demand heightens gold's appeal Asian demand heightens gold's appeal

Bloomberg reported that positive US housing data had rekindled demand for the precious metal, driving speculation that the Federal Reserve would hold back interest rates.

It is also helped by moves from European and Asian central banks expanding stimulus to combat the slowdown.

Gold's popularity in China and India has prompted investors to sell, with both countries engaging in the biggest gold sales in more than a year.

Exports to China from Switzerland almost doubled to 46.4 metric tonnes last month with shipments to India more than doubled to 72.5 tonnes as imports from the UK increased six-fold.

This indicates the movement of gold bars into Swiss refineries, where they are processed and then shipped to Asian markets.

In attempts to finance development plans, Freeport McMoRan Inc is considering spinning off its energy assets after acquiring them two years ago for $US9 billion ($A11.5 billion).

At the time of the deal, crude oil fetched $US80 ($A 102.6) a barrel - far from this year where it has fallen to less than $US40 ($A56.50) a barrel.

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