Investing.com - Gold prices held on to overnight gains during North America's session on Thursday, as the U.S. dollar and global stock markets pulled back after surprisingly weak Chinese trade data raised fresh concern about the world's second-largest economy.
Gold for December delivery on the Comex division of the New York Mercantile Exchange rose by as much as 0.8% to touch $1,263.50 a troy ounce. It was last at $1,258.45 by 8:50AM ET (12:50GMT), up $5.25, or 0.42%. A day earlier, the yellow metal dipped $2.10, or 0.17%.
China's September exports plunged, while imports unexpectedly shrank after picking up in August, suggesting signs of steadying in the world's second-largest economy may be short-lived.
Exports tumbled 10.0% from a year earlier, far worse than forecasts for a decline of 3.0%, while imports dropped 1.9%, compared to expectations for a gain of 1.0%. That left China with a trade surplus of $41.99 billion for the month, the lowest in six months, the General Administration of Customs said on Thursday.
The downbeat figures triggered a fall in global equities and a drop in the U.S. dollar and gave a lift to safe-haven assets, such as gold and the yen.
Against a basket of six major currencies, the dollar last stood at 97.78, having pulled back from a seven-month high of 98.12 set earlier on Thursday.
Meanwhile, minutes of the Federal Reserve's September policy meeting released on Wednesday showed several voting members of the policy committee judged a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen.
Markets are currently pricing in around a 65% chance of a rate hike at December's meeting, according to Investing.com's Fed Rate Monitor Tool.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Also on the Comex, silver futures for December delivery was little changed at $17.50 a troy ounce during morning hours in New York, while copper futures lost 5.1 cents, or 2.37%, to $2.125 a pound.
China is the world’s largest copper consumer, accounting for nearly 45% of world consumption.