Gold rebounds from one-week low as dollar plumbs three-year nadir

Gold futures tilted higher in American trade as the dollar index plumbed late-2014 lows, following earlier data from China, the world's largest metals consumer, and the US, the world's largest economy. 

As of 02:59 GMT, gold futures due on February 15 rose 0.33% to $1,331.80 an ounce from the opening of $1,327.40, while the dollar index shed 0.47% to 90.48 from the opening of 90.90.

Earlier data from China, which accounts for 40% of global copper demand, showed the seasonally-adjusted reading for fourth-quarter GDP growth at 1.6%, down from 1.8% in the third quarter, and missing expectations of 1.7%. 

On a yearly basis, China's GDP growth steadied at 6.8% in the fourth quarter, besting forecasts of 6.7%, while retail sales slowed  down to 9.4% in December, as industrial output accelerated to 6.2% from 6.1%. 

Earlier US data showed building permits steadied at an annualized 1.30 million units in December, same as November, and beating expectations of 1.29 million. 

US housing starts fell to an annualized 1.19 million units in December from 1.30 million in November, missing projections of 1.28 million units. 

US unemployment claims fell to 220 thousand in the week ending January 13, the lowest since March 1973, down from the previous reading's 261K, beating expectations of 250K. 

The Philadelphia Fed Business Outlook Survey, also called the Philadelphia Fed Manufacturing Index, dipped in January to 22.2 from 26.2 in December, missing forecasts of 24.9. 

President Donald Trump commented on the chances of closing the government in the US with no firm answer, noting that in case no deal was reached between the Democrats and the Republicans in Congress, the government would be shut from January 19. 

Last month, President Donald Trump singed into law the $1.5 trillion tax reform bill, which cuts the corporate tax rate from 35% to 21%, while also signing a stopgap government spending bill to prevent a government shutdown, in turn underpinning Wall Street to successive record highs. 

Gold holdings at the SPDR Trust, the world's largest gold-backed investment fund, settled on Wednesday at 828.96 tonnes, the lowest since August 29, after rising 3% on 2017, or about 23.63 tonnes.