Gold traded near the lowest level this year as world equities held near a six-month high on renewed optimism about global growth after China’s economy unexpectedly held up in the first quarter.
China’s first-quarter GDP figures out Wednesday exceeded economist estimates and March retail sales and industrial production were also better-than-expected. That’s easing concerns about a slowdown that had rattled investors.
A bearish technical indicator is also weighing on gold. The metal broke below its 100-day moving average on Monday, pointing to further weakness.
Spot gold +0.2% to $1,279.46/oz at 7:15am in London after dropping to $1,273.02 on Tuesday, lowest intraday level since Dec. 27.
Source : Bloomberg