Mainland Chinese stocks plunged 7% Monday and Beijing halted trading after the government revealed slower-than-anticipated factory data. [China ETFs Suffer New Year Hangover ]
While geopolitical risk may help gold attract additional safe-haven investment demand, precious metals have been under pressure as the U.S. dollar appreciates and the Federal Reserve moves toward interest rate normalization. Higher rates diminishes demand for non-interest-paying gold. Additionally, a stronger U.S. dollar makes USD-denominated gold bullion more expensive for foreign buyers.
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Max Chen contributed to this article.