PRECIOUS-Gold pressured as easing growth concerns lift equities

Shutterstock photo

* Positive economic data from U.S., China lift sentiment

* Asian shares hover near 9-month peak

* SPDR gold holdings slip to lowest since early Nov (Updates prices)

April 16 (Reuters) - Gold prices fell on Tuesday to hovernear their lowest in over a week, as positive economic data frommajor economies stoked risk appetite, softening demand forsafe-haven bullion.

Spot gold XAU= was down 0.3 percent at $1,284.53 perounce, as of 1111 GMT. In the previous session, prices droppedto $1,281.96, their weakest since April 4.

U.S. gold futures GCv1 shed 0.3 percent to $1,287.40

"It's a question of risk sentiment in financial markets.Equities are up, which is putting pressure on gold,traditionally seen as a safe-haven," Julius Baer analyst CarstenMenke said.

"We've seen positive data out of China lately. That reallysupports the view of an improvement in the Chinese economy aswell as the global economy, in turn supporting risk sentiment."

China reported better-than-expected credit and exportfigures last week that allayed concerns regarding the pace ofeconomic growth. urn:newsml:reuters.com:*:nL3N21Q1YTurn:newsml:reuters.com:*:nZZN3EK000

Jobs data from the United States last week also assuagedconcerns that the world's largest economy was losing momentum,with the number of Americans filing applications forunemployment benefits dropping to a 49-1/2-year low. urn:newsml:reuters.com:*:nLNSBFEF1Vurn:newsml:reuters.com:*:nL1N21S1L3

Stock markets inched higher as the reassuring Chineseeconomic data helped investors shrug off disappointing bankearnings in the U.S., while volatility in European markets tookanother leg lower. MKTS/GLOB

"Fast money remain ... sellers on the day while longer-termbulls are tentatively on the bid above $1,280," said StephenInnes, head of trading and market strategy, SPI AssetManagement.

"But given we are in the very early stages of a possibleglobal growth-inspired risk revival, prices remain precariouslyperched above significant support level as downside momentumcontinues to build."

Positive news on U.S.-China trade talks as well as theabsence of any large global geo-political issues have taken some sheen off bullion, analysts said.

Gold prices were trading below key technical support levelsincluding the psychologically significant $1,300 mark, seen asnegative bias, analysts and traders said.

"The yellow metal now sits firmly underneath the 100-daymoving average at $1,289, with the figure now an importantpivot, while the January-February lows around $1,280 - $1,283should see supportive interest," MKS PAMP Group said in a note.

Holdings of SPDR Gold TrustGLD , the world's largestgold-backed exchange-traded fund, on Monday dropped to theirlowest since Nov. 9, 2018. GOL/ETF

Among other metals, silver XAG= dipped 0.3 percent to$14.95 an ounce, having hit $14.81, its lowest since Dec. 26, inthe previous session.

Spot platinum XPT= gained 0.2 percent to $887.67 per ouncewhile palladium XPD= rose 0.1 percent to $1,362.40. (Reporting by Nallur Sethuraman in Bengaluru; editing by EmeliaSithole-Matarise) ((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


See Reuters News

Research Brokers before you trade

Want to trade FX?