Gold gains as weak China data weighs on risk appetite

Gold prices inched up on Thursday as Asian equities turned lower after weaker-than-expected economic data out of China weighed on risk appetite, boosting demand for safe-haven assets.

Spot gold was up 0.2% at $1,465.22 per ounce at 0544 GMT, while U.S. gold futures also rose 0.2% at $1,465.90 per ounce.

Asian stocks fell after China's industrial output grew significantly slower than expected in October, as weakness in global and domestic demand and the drawn-out Sino-U.S. trade war weighed on activity in the world's second-largest economy.

"Gold is being supported as the Chinese industrial production and retail sales came way below expectations," OANDA analyst Jeffrey Halley said.

"Another deterioration in Hong Kong this week will further support gold, but it's really all about this ongoing trade talks, which is becoming like a broken record."

Dialling up the trade rhetoric, U.S. President Donald Trump on Wednesday threatened to ramp up tariffs on Chinese goods if the countries failed to reach a deal on trade.

That came after media said the U.S.-China trade negotiations had 'hit a snag' over farm purchases, with China not wanting a deal that looked one-sided in favour of the United States.

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