Mubasher: Gold prices were near their lowest level since late last year on Thursday amid signs that the global economy might not be as badly afflicted by weaker growth as previously feared, Reuters reported.
This boosted investors’ appetite for riskier assets, weighing on the safe-haven yellow metal.
By 9:29 am GMT, spot gold rose 0.19% to $1,276.44 per ounce, after tumbling to $1,270.99 per ounce earlier in the session, the lowest price seen since 27 December 2018, while US gold futures went up 0.13% to $1,278.40 per ounce.
“Recent data over the last 10 sessions or so have eased concerns [about the global economic growth] and safe-haven assets have been under significant pressure,” CMC Markets chief strategist Michael McCarthy was quoted by Reuters.
Data from both China and the US, the world’s biggest economies, allayed fears about the global growth, making safe-haven bullion less attractive.
While Chinese economy saw a better-than-expected growth in the first quarter of this year, dismissing prospects of further weakness, the US trade deficit receded to an eight-month trough last February, adding to the economic growth in the prior quarter.
Moreover, Beijing and Washington set a provisional schedule for the next round of negotiations with the aim to conclude the talks by early June, The Wall Street Journal reported on Wednesday.
Currently, market participants also anticipate data pertaining US retail sales due later in the day.