Manufacturing chines data affect gold price

Raw Gold

China is one of the leading country for the global economy, from a few days ago we watched a decline in the growth rate of china by 0.8% which caused a fluctuate in the global economy.

China surprised us today by a weak manufacturing data, index came in at 50.5 in April versus 51.6 in March, which was reflected over the stock market in Asia, fears push investors in Asia to buy US stock instead of gold, due to the fluctuate of gold price, the move of the Asian investors is a bad indicator for gold price, which could end the legend of ( gold is the safe heaven)

Gold price in china especially declined more than the global decline, also some investor in china start to sell gold today to over come their lose in the stock market, they withdraw cash to buy US stock.

the issue of selling the chines stock is a bad indicator for the manufacturing sector in china, IF china did not over come this wave china will watch a decline in the economy by the end of the year.

china is considered as the second most important country after USA, if their is any future decline in the manufacturing section, china could lose its global lead in this sector.