Gold prices drop sharply in Asia on weak flash China PMI, market turmoil

Gold prices fell hard in Asia on Friday as investors see a slowdown in China manufacturing as ensuring continued easy policy by one of the world's top yellow metal buyers and as continued to assess the scope for a Federal Reserve rate hike in September and geopolitical tension appears eased for now.
The Markit/Caixin survey of China manufacturing showed a decline to 48.2 a 15-month-low, and well below the expected 49.7 and off from June's final of 49.4. Final data is due in August.
The flash reading suggests manufacturing conditions may be deteriorating and will raise questions about the resilience of the economic recovery despite Beijing's confidence for a better second half.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 1.43% at $1,0878.40 a troy ounce.
Silver for September delivery dropped 1.31% to $14.508 a troy ounce.
Copper for September delivery eased 0.39% to $2.367 a pound.
Otherwise, China markets were relatively calm following a report in the UK press that $800 billion has fled the country as a systemic crisis brews.
London's Daily Telegraph cited research reports showing a "frighteningly large" $800 billion has flowed out of China over the past year, as the forces which saw Chinese reserves top out at nearly $4 trillion unwind at a rapid and dangerous pace.
Overnight, gold futures inched up on Thursday amid a weaker dollar, halting a 10-day losing streak – its longest in nearly two decades.
A session earlier, gold futures plunged more than 1% to close under $1,100 for the first time in more than five years. Previously, the precious metal closed lower in every session dating back to July 9. The extended skid tied a 10-day losing streak in 1996 for the longest slide during the period.