Gold prices fell on Friday as robust economic data from China boosted hopes of a swift recovery, though bullion was set to rise more than 1 percent on the week as the US dollar and Treasury yields pulled back from recent highs.
China’s March factory gate prices rose at their fastest annual pace since July 2018, beating estimates.
Spot gold fell 0.4 percent to USD 1,748.81 per ounce at 0655 GMT, having hit its highest since March 1 at USD 1,758.45 an ounce on Thursday. US gold futures slipped 0.5 percent to USD 1,748.70 per ounce.
”Gold is facing some headwinds due to optimism around the recovery story as a result of strong data that has been coming out of the United States and China,” said Ravindra Rao, vice president, commodities at Kotak Securities.
Still, the metal has gained nearly 1.2 percent this week, after two weeks of losses.
”The (falling) dollar and Treasury yields have helped gold this week along with the Fed’s dovish tone, that has been topped with lockdowns in Europe and parts of Asia with some negative vaccine results,” said Brian Lan, managing director at dealer GoldSilver Central.
Recent robust economic data, driven by massive stimulus measures, has dulled safe-haven demand for bullion. Federal Reserve Chair Jerome Powell on Thursday signalled the central bank is nowhere near to reducing its support for the US economy and cautioned that the anticipated price increase this year is likely to be temporary.
”The likely rise in inflation in April could support gold prices in the coming weeks, especially if it rises faster than bond yields. In the more medium term, the rise in bond yields is likely to put renewed pressure on gold,” Fitch Solutions said in a note.
Silver eased 0.8 percent to USD 25.23 and platinum was down 1.2 percent, at USD 1,214.67. Palladium rose 0.2 percent to USD 2,630.11, but was on track for its biggest weekly fall since week ending Feb. 26.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM