Singapore - Gold climbed for a third day as North Korea’s first nuclear test in almost three years spurred demand for haven assets amid concern China’s slowdown is deepening.
Bullion for immediate delivery gained as much as 0.5% to $1 083.42 an ounce and was at $1,082.14 by 4 p.m. in Singapore, according to Bloomberg generic pricing. The three-day rally was the longest run of gains since October 14.
North Korea said it successfully tested its first hydrogen bomb, the fourth time it has detonated a nuclear device and a move that reignites tensions with neighbours. The move aided bullion’s gains, said Madhavi Mehta, an analyst at Mumbai-based Kotak Commodity Services.
A private Chinese services gauge slumped to the second-lowest reading since the series began a decade ago and close to a level signalling contraction.
“Largely supporting price is safe haven buying amid concerns about China,” Mehta said in an e-mail. “Chinese services data released today disappointed.”
Gold rallied on Monday amid a global equity rout triggered by a selloff in China’s stocks and mounting tension between Saudi Arabia and Iran. The focus will move back to the US as investors await Federal Reserve minutes and jobs data later Wednesday, said Mehta.
The Fed is scheduled to release minutes from its December meeting, at which policy makers boosted borrowing costs for the first time since 2006. The central bank’s policy makers said the pace of tightening would be gradual and depend on firming labour and inflation data.
Spot silver was little changed, while platinum lost 0.3% and palladium retreated 0.5%.