Business News Asia
The gold price was almost unchanged in Asia on Monday, defying the negative factors from Friday, when the U.S. nonfarm payrolls data came in better than expected. The spot price of gold rose slightly by 0.15% to $ 1,801.00 per ounce. The better-than-expected nonfarm payroll data will influence the Federal Reserve’s interest rate decision ahead of the release of the Producer Price Index (PPI), which is intended to measure inflation on the producer side.
The positive sentiment that boosted the gold price was also the U.S. dollar, which continues its current slide. The dollar index fell 0.4%, while some Asian currencies rose sharply, led by the Chinese yuan, which gained 0.9% to 6.9628. The Japanese yen traded at 134 today, up more than 13% from the October low. In addition, the South Korean won rose 0.8% and the SGD rose 0.5%.
The yuan gained momentum after Chinese authorities appeared to be easing COVID measures in China, starting with Shanghai and Beijing, which have already begun easing. Calls for easing COVID measures in China are strong among the population, which led to riots in several cities last week.
The impact of the stringent COVID measures on the Chinese economy was highlighted last week by the Manufacturing Purchasing Managers’ Index and today by the Services Purchasing Managers’ Index, which showed that activity in the manufacturing and services sectors continued to decline in November.