Gold prices edged up in Wednesday's trading session, as strong physical purchases from China and other Asian countries pushed prices higher, yet gains may be capped by the recent rally in equities market.
As of (09:47 GMT+3) Spot gold was at $1456.71 after opening at $1451.92, having earlier hit a low of $1441.17 and a high of $1458.74.
Gold imports by China from Hong Kong hit a record high in March as buyers in the biggest consumer following India boosted purchases. Gold imports are expected to rise further after doubling to an all time high, where traders saw the steep fall in international gold prices mid-April as buying opportunity.
Meanwhile, China`s trade data showed a steady recovery in the world`s second largest economy, where trade balance recorded more-than-estimated surplus in April. The reading showed surplus by $18.16 billion, compared with a previous reading of $0.88 billion, while analysts’ expectations were $16.15 billion.
Gold prices were pressured on Monday on speculation that China will announce more stimulus measures to boost economic growth, increasing the precious metal’s appeal. Recent data showed that economic growth in the world’s second largest economy has slowed where HSBC Non-Manufacturing Purchasing Managers’ Index fell to 51.1 last month, compared with 54.3 in March.
- Silver rose 0.04% to trade around 23.94
- Platinum edged higher by 0.52% to 1,491.85
- Palladium inched 0.73% up to 684.80
Gold prices fell on Tuesday after Dutch Finance Minister Jeroen Dijsselbloem discussed details for the European banking union project, adding to signs that the euro area’s leaders will act to contain its fiscal crisis, boosting gold’s safe-haven appeal.
The Bank of England (BOE) is due to announce its monetary decisions for May on Thursday, economists expect that first-quarter solid GDP figure will persuade the Bank to maintain asset purchases at £375 billion, and maintain its interest rates at record low of 0.5 percent.