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Gold Trades Below $1300 As US Economic Outlook Weighs

Published 04/17/2014, 05:51 AM
Updated 07/09/2023, 06:31 AM

Precious-Gold traded below $1300 an ounce on Thursday on expectations ongoing recovery signs from the U.S. would curb haven demand on the metal.

Gold prices plunged 1.82 percent on Tuesday, hitting a 1-1/2 week low of $1,290.34, as the recent data signaled recovery I strengthening in the world’s biggest economy.

Data released yesterday showed a rise in housing starts last month and a better than forecast advance in industrial production for March.

Later in the day, eyes will focus on the weekly jobless claims and Philadelphia Fed manufacturing index for April.

The Fed’s Beige Book released on Wednesday illustrated that growth "had picked up" after "lingering winter weather hampered business activity, but the impact was less severe than earlier this year."

Fed Chairman Janet Yellen said yesterday the Fed would be delivering policy stimulus for some time to come, where the timing of raising interest rates would depend on the progress in the labor market and inflation.

On the other hand, the escalating tensions in Ukraine prevented further stronger losses in the metal.

In Eastern Ukraine pro-Russian activist put Russia’ flags on military vehicles that appear to be defected from the Ukrainian army.

Kiev accused Moscow of enhancing terrorism in the country’s eastern provinces.

Meanwhile, gold is trading around $1297.50 an ounce after hitting a high of $1303.97 and a low of $1296.40.

The shiny metal is currently trading in a critical level, slightly below Daily SMA 200 detected at $1299.42.

The U.S. dollar retreated versus a basket of major currencies to hover around 79.74, after hitting a peak of 79.86, according to the dollar index.

Crude oil for May’s delivery resumed its rise for a fourth session to trade around $104.08 a barrel after touching a high of $104.26.

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