Gold hovers near 6-week peak amid China slowdown woes

SINGAPORE, Oct 22 (Reuters) : Gold was trading near its highest level since early September on Wednesday, supported by concerns over slower economic growth in China, although expectations Asian physical demand may slacken kept gains in check.
Worries over the fate of the global economy heightened this week after China said third-quarter growth was the slowest since 2009, lifting appetite for safe-haven assets such as gold.
Spot gold was little changed at $1,248.69 an ounce by 0624 GMT, not far below Tuesday's peak of $1,255.20, which was its highest since Sept. 10.
US gold futures eased 0.2 per cent to $1,249.20 an ounce.
Gold's relative strength reflects the continued uncertainty in the global economy, said Yuichi Ikemizu, branch manager at Standard Bank in Japan.
"Gold and other metals have been a bit oversold and $1,200 is quite a solid support level. We have also seen Chinese buying this month that has supported gold," said Ikemizu.