LONDON: Gold fell on Thursday, breaking below the key technical support of $1,300, as the dollar edged up after UK lawmakers voted against a no-deal Brexit, while gains in European stocks further dented bullion’s allure.
Spot gold was down 0.8 per cent at $1,298.25 per ounce as of 1112 GMT, retreating from $1,311.07 hit on Wednesday, its highest since March 1.
US gold futures also dipped 0.8pc, to $1,298.40 an ounce.
“It is a combination of factors that have weighed on gold; weak Chinese data that is weighing on industrial demand for the metal, risk-on sentiment, rebounding yields, a higher dollar and stronger UK stocks,” said Forex.com analyst Fawad Razaqzada.
Growth in China’s industrial output fell to a 17-year low in the first two months of the year pointing to further weakness in the world’s second-biggest economy that is likely to trigger more support measures from Beijing.
European shares rallied to five-month highs after Britain’s parliament removed a key source of uncertainty by rejecting a no-deal Brexit, while the dollar gained against a basket of currencies.
Published in Dawn, March 15th, 2019