Gold rose after weak data from China

Gold prices rose in the Asian session after weaker data on China's GDP came out, and shares in Asia went down. Gold futures with delivery to the New York Mercantile Exchange fell by 0.08% to 1226.4 an ounce.

China's economy for the third quarter of this year showed growth of 6.5%, surpassing investors' expectations for a 6.6% growth. The sale of the Chinese stock market, rising geopolitical risks and the Fed's interest rate policy, worries over the Italian budget, and the widespread war between China and the United States create instability in stock markets around the world. This will be positive for gold and the price will find support from investors.

Precious metal managed to hold over $ 1,200 in August. defending its reputation as a safe-heaven asset in difficult times. The rise in the price of gold also contributes to the rise in bond prices.

Still, we can not fail to point out that gold has dropped 10 percent from its peak in April after investors chose the US dollar against rising interest rates and the US-China Trade War.

For the moment, we have a downhill break with a hold above $ 1200, with the potential to reach 61.8 Fibonacci where we expect a test.

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