SINGAPORE, May 16 (Reuters) - Gold rose for a second session
on Monday, as slowing economic growth in China and weakness in
Asian stock markets lifted the safe haven appeal of the precious
metal.
FUNDAMENTALS
* Spot gold XAU= gained 0.1 percent to $1,273.90 an ounce
by 0042 GMT and U.S. gold futures GCcv1 added 0.2 percent to
$1,275.50 an ounce.
* China's investment, factory output and retail sales all
grew more slowly than expected in April, adding to doubts about
whether the world's second-largest economy is stabilising, data
released on Saturday showed.
* Gold has gained 20 percent this year after weak economic
data in the United States and elsewhere eased expectations of a
near-term increase in U.S. interest rates.
* Higher rates would lift the opportunity cost of holding
non-yielding gold.
* Still, stronger-than-expected U.S. economic data last week
renewed expectations the Federal Reserve will raise interest
rates more than once this year, capping gains in precious
metals.
* U.S. retail sales in April recorded their biggest increase
in a year as Americans stepped up purchases of automobiles and a
range of other goods, suggesting the economy was regaining
momentum after growth almost stalled in the first quarter.
* Two Fed officials said the central bank should raise rates
if data points to an improving economy.
* Spot silver XAG= advanced 0.2 percent to $17.13 an
ounce, platinum XPT= was up 0.3 percent at $1,050.4 and
palladium XPD= was rose 0.4 percent at $591.47.
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MARKET NEWS
* Asian stocks slipped early on Monday, weighed down by
Friday's decline on Wall Street and soft Chinese economic data
released over the weekend. MKTS/BLOB
DATA AHEAD (GMT)
1230 U.S. New York Fed manufacturing May
1400 U.S. NAHB housing market index May