Gold dips after promising China data; set for weekly rise

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ILUSTRASI. Gold prices fell on Friday as robust economic data from China boosted hopes of a swift recovery

Sumber: Reuters | Editor: Wahyu T.Rahmawati

KABARIN.CO.ID – JAKARTA. Gold prices fell on Friday as robust economic data from China boosted hopes of a swift recovery, though bullion was set to rise more than 1% on the week as the U.S. dollar and Treasury yields pulled back from recent highs. China’s March factory gate prices rose at their fastest annual pace since July 2018, beating estimates. 

Spot gold fell 0.4% to $1,748.81 per ounce at 0655 GMT, having hit its highest since March 1 at $1,758.45 an ounce on Thursday. U.S. gold futures slipped 0.5% to $1,748.70 per ounce. 

“Gold is facing some headwinds due to optimism around the recovery story as a result of strong data that has been coming out of the United States and China,” said Ravindra Rao, vice president, commodities at Kotak Securities. 

Still, the metal has gained nearly 1.2% this week, after two weeks of losses. “The (falling) dollar and Treasury yields have helped gold this week along with the Fed’s dovish tone, that has been topped with lockdowns in Europe and parts of Asia with some negative vaccine results,” said Brian Lan, managing director at dealer GoldSilver Central. 

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Recent robust economic data, driven by massive stimulus measures, has dulled safe-haven demand for bullion. Federal Reserve Chair Jerome Powell on Thursday signalled the central bank is nowhere near to reducing its support for the U.S. economy and cautioned that the anticipated price increase this year is likely to be temporary. 

“The likely rise in inflation in April could support gold prices in the coming weeks, especially if it rises faster than bond yields. In the more medium term, the rise in bond yields is likely to put renewed pressure on gold,” Fitch Solutions said in a note. 

Silver eased 0.8% to $25.23 and platinum was down 1.2%, at $1,214.67. Palladium rose 0.2% to $2,630.11, but was on track for its biggest weekly fall since week ending Feb. 26.

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Sumber : Reuters
Editor: Wahyu T.Rahmawati

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