Mubasher: Gold traded near its lowest levels in four months and a half tapped in the last settlement on Wednesday, as economic figures from China assuaged worries over global growth, whetting appetite for riskier assets, Reuters reported.
By 11:00 am GMT, spot gold went down 0.04% to $1,276.24 per ounce, after plunging as much as 1.2% to $1,272.70 per ounce, the lowest level since 27 December, whereas US gold futures traded at $1,278.80 per ounce.
Since hitting a 10-month peak in February, gold endured a loss of more than 5%.
Official data showed that China’s economic growth, the world’s second biggest economy, advanced by 6.4% in the first quarter of this year, versus forecasts for a 6.3% growth expected by analysts polled by Reuters.
Global stock markets edged higher following a slew of Chinese data indicated Beijing’s latest stimulus measures might be paying off.
Investors were wagering on the recovery of markets, taking a heavy toll on the yellow metal, ActivTrades chief analyst Carlo Alberto De Casa told the news agency.
“From a technical point of view, the fall below $1,280 is a weak signal, with prices having already come below the 100-day moving average,” De Casa said.
Gold is set to go bearish on the short term, potentially testing the $1,259 level, Commerzbank technical analyst Karen Jones was cited by Reuters.