Gold Soars As Beijing Lowers Yuan Fix Ahead Of Chinese Econ Data Beating On Tariff-Frontrunning

China's economy has shown surprising resilience ahead of the release of its GDP data, with gold prices soaring for the third day in a row and the yuan fix being set at a notably lower rate. The statistics bureau released data on new and existing home prices for March, showing that price drops have slowed on a month-on-month basis. China's GDP growth beat expectations, rising 5.4% and exceeding Beijing's full-year growth target for 2025. The country's trade surplus was over $270 billion in the first quarter, just below the record in the final three months of last year and almost 50% larger than a year ago. Other data, including retail sales, industrial production, and fixed asset investment, also beat expectations. The better-than-expected data is likely due to tariff front-running, as US tariffs on China are now high enough to wipe out Chinese shipments to the US. Despite the positive data, economists are doubting Beijing's ability to achieve its official target of about 5% growth this year due to the escalating trade war with the US. The National Bureau of Statistics has struck a note of caution, emphasizing the need for greater support for the economy and the implementation of more proactive and effective macro policies. Beijing is placing high hopes on domestic demand, particularly consumption, to drive economic growth this year, and has issued a 30-point plan aimed at stimulating consumer demand. The country's economic growth is expected to face stronger headwinds due to the trade war, and policymakers are likely to expedite stimulus measures to support the economy.