Gold prices stayed below the key $1,280 level yesterday, near a four-month trough, as better-than-expected economic readings from China lifted Asian shares and sharpened risk appetite, denting the metal’s safe-haven appeal.
Spot gold were up 0,1 percent at $1 277,32 per ounce as of 0513 GMT, after having fallen as much as 1,2 percent to $1 272,70, its lowest since Dec. 27, in the previous session.
US gold futures were up 0,2 percent to $1 278,80 an ounce.
China’s pace of economic growth in the first quarter remained steady at 6,4 percent, beating expectations of a growth rate of 6,3 percent, helped by a sharply higher factory production.
The data, which signalled that Beijing’s recent stimulus drive might be paying off, swung Asian shares higher.
“With the (Chinese) data that we’ve got, it certainly adds a bit of a downside to gold from here,” said IG Markets analyst Kyle Rodda.
“The fact that we have broken below the key $1 280 level might make it difficult for prices to recover.”
The metal has fallen by over 5 percent since its February high of $1,346.73 an ounce and is trading below its 50 and 100-day moving averages, which, analysts say is a sign of further weakness after falling the most in two weeks in the previous session on soft US economic data. — Reuters.