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Gold Falls as Improved Economic Growth Output Boosts Risk Appetite

Published 04/18/2019, 12:53 AM
Updated 04/18/2019, 12:53 AM

Investing.com - Gold prices fell on Thursday in Asia as upbeat Chinese economic data pointed to an improved growth outlook and put pressure on the safe-haven metal.

Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.2% to $1.273.75 per ounce by 12:40 AM ET (04:20 GMT).

The metal has so far lost more than 1% this week, and is on track for a fourth straight weekly decline. Most markets are closed for Good Friday on April 19.

China’s economy expanded more than expected in the first quarter of 2019, official data showed on Wednesday, while industrial output and retail sales for March were also better than expected.

Trade and credit data that came out last Friday also exceeded forecasts.

“The pretty good Chinese data implies the concerns of a slowdown in global growth have been mitigated to a great extent, which should elevate risk appetite,” Bart Melek, head of commodity strategies at TD Securities, told Reuters.

The data have also lifted bond yields, making the most common "haven" alternative to gold more attractive.

Traders’ immediate focus will switch to the release of Purchasing Managers Indexes for the manufacturing and service sectors in Europe later in the day.

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