Mubasher: Gold prices declined on Monday, seeing their lowest level since more than a week earlier in the day, as strong data from China boosted equity markets, and mollified global economic slowdown worries, according to Reuters.
By 8:35 am GMT, spot gold declined 0.25% to $1,287.22 per ounce, after reaching $1,286.44 per ounce, their lowest since 5 April, while US gold futures fell 0.44% to $1,289.50 per ounce.
The yellow metal saw a decline as macroeconomic support has whetted investor appetite for riskier assets, Singapore-based CMC Markets analyst Margaret Yang was cited by Reuters.
Among bearish factors dragging on gold prices were stronger than expected Chinese credit and export growth data, good news for US corporates, and prospects of a resolution to the trade row between Washington and Beijing, Yang said.
Chinese exports surged 14.2% year-on-year last March, recording their strongest growth in five months, official data showed on Friday.
Moreover, upbeat data on US import prices weighed on the appeal of the safe-haven precious metal, Reuters said.
“The US Federal Reserve hit the brakes hard in first quarter but as data has improved rate cut chances are lower,” OANDA senior market analyst Alfonso Esparza was quoted by the news agency.
If retail sales data, which will be released later this week, showed better performance, “it would start building a case for an interest rate lift later this year despite the Fed’s dovish turn in January,” Esparza said.