Quantcast

PRECIOUS-Gold holds near four-month low as China data lifts riskier assets


Shutterstock photo


* China Q1 GDP up 6.4 pct vs analyst expectations of 6.3 pct

* Gold has fallen more than 5 pct from Feb high

* SPDR Gold holdings down 4.5 pct so far this year (Updates prices)

April 17 (Reuters) - Gold prices on Wednesday held near4-1/2-month lows touched in the previous session as economicdata from China tempered concerns about global growth, boostingrisk appetite.

Spot gold XAU= was broadly steady at $1,276.31 per ounceby 1129 GMT, having fallen as much as 1.2 percent to $1,272.70,its lowest since Dec. 27, on Tuesday.

U.S. gold futures GCcv1 were up 0.1 percent at $1,278.50an ounce.

"Investors are betting on the recovery of markets and that'smostly what's pulling gold down. The main market driver ismoving from central banks to what is happening in the stockmarkets," said Carlo Alberto De Casa, chief analyst withActivTrades.

Data showed China's economic growth in the first quarterremained steady at 6.4 percent, beating expectations for a 6.3percent expansion. urn:newsml:reuters.com:*:nB9N21S004

World stocks inched higher after a raft of Chinese datasignalled Beijing's recent stimulus drive might be paying off. MKTS/GLOB

Gold prices have fallen more than 5 percent since touching a10-month peak in February.

On the technical front, gold's break below key supportlevels, including the 100- and 50-day moving averages, signalleda further downside to prices, analysts and traders said.

"From a technical point of view, the fall below $1,280 is aweak signal, with prices having already come below the 100-daymoving average," De Casa said.

Holdings of SPDR Gold TrustGLD , the world's largestgold-backed exchange-traded fund, fell to a near six-month lowof 752.27 tonnes on Tuesday. Holdings are down 4.5 percent sofar this year. GOL/ETF

Further weakness in gold is possible in the near term,potentially testing the $1,259 level, which is likely to hold,Commerzbank technical analyst Karen Jones wrote in a note.

Meanwhile, silver XAG= gained 0.2 percent to $15.00 anounce.

Spot platinum XPT= rose 1.2 percent to $887 per ounce,while palladium XPD= climbed 1.2 percent to $1,365.78. (Reporting by Nallur Sethuraman in Bengaluru; Editing by DaleHudson and David Evans) ((Sethuraman.NR@thomsonreuters.com; (Within U.S.1-651-848-5832, Outside U.S. +91 8067496031); Reuters Messaging:nallur.sethuraman.thomsonreuters.com@reuters.net))






This article appears in: Stocks , World Markets , Politics
Referenced Symbols: GLD ,




More from Reuters

Subscribe






See Reuters News













Research Brokers before you trade

Want to trade FX?