The gold price held onto recent gains during Asian trading despite concerns the global economy is slowing. Chinese GDP figures disappointed the markets after they announced their economy grew at its slowest rate since the 2008 economic crisis.
The markets will now shift their attention towards Wednesdays U.S. inflation data release and Thursday’s European manufacturing report.
The world’s largest gold backed exchange traded fund, The SPDR Gold Trust, which is often used as a barometer of investor sentiment, confirmed its holdings fell yesterday by 1.18% to 751.97 tonnes on Monday.
Physical buying in India is expected to pick up this week as many Indians will purchase gold as part of their Diwali celebrations.
Gold is currently trading at £774.05 per ounce, silver £10.80 per ounce, platinum £787.53 per ounce and palladium £471.49 per ounce.