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Gold Drops With China’s Slowdown and Fed Rate Path in Focus

  • PBOC delivers rate cut as data suggest China recovery ebbing
  • Bullion capped longest run of weekly gains in almost a year
Updated on

Gold dropped as investors assessed signs that China’s economy is struggling to recover ahead of minutes from the Federal Reserve later in the week.

China’s central bank unexpectedly cut its key interest rate as it ramped up support for an economy weighed down by virus lockdowns and a deepening property crisis. Economic data released Monday showed the country’s recovery is ebbing, potentially crimping physical demand for gold in the world’s largest consumer.