Weak China growth triggers drop in commodities, stocks

An unexpected slowdown in China’s first-quarter growth sent stocks and commodities downward on Monday, with gold taking its sharpest plunge since 1980, Bloomberg reported. The S&P GSCI, a gauge of 24 commodities, fell by 2.3%. The losses were led by a 13% decline in silver and 11% decline in gold. Slower growth in China means less risk of global inflation, which gold is seen as a hedge against. The S&P 500 dropped 2.3% while the Shanghai Composite Index fell 1.1% on Monday. The US dollar and Japanese yen appreciated, while a group of emerging market currencies – including the South African rand and Russian ruble – declined.