Alert Sign Dear reader, online ads enable us to deliver the journalism you value. Please support us by taking a moment to turn off Adblock on Dawn.com.

Alert Sign Dear reader, please upgrade to the latest version of IE to have a better reading experience

.

Gold lowers

April 02, 2019

Email

LONDON: Gold prices eased on Monday as stock markets rallied after upbeat Chinese economic data soothed some concerns about the global economy and boosted risk appetite, although losses were limited by a sliding dollar.

Spot gold was down 0.1 per cent at $1,290.16 per ounce by 1148 GMT, after on Friday touching its lowest since March 8 at $1,286.35.

US gold futures fell 0.2pc to $1,295.40 an ounce.

“We have a positive environment in the equity markets so risk is on and that’s a negative for gold,” Julius Baer analyst Carsten Menke said.

Global stocks surged on strong Chinese factory activity data and signs of progress in US-China trade negotiations.

The dollar index was lower, however, limiting gold’s losses as it makes holding the metal cheaper for buyers holding other currencies.

“We have to look through the noise and at the bigger picture. We still think the global economy is slowing in the 12 to 18 month horizon, especially in the US, which should help gold in the longer term,” Menke said.

Gold has gained more than 11pc since touching its lowest in some 1-1/2 years last August, on a dovish US Federal Reserve and global growth concerns.

Investors are awaiting US retail sales and manufacturing PMI data due later in the day.

Global demand for gold in 2019 will rise to the highest in four years, as higher consumption by jewellers offsets a fall in purchases by central banks, an industry report said on Monday.

Elsewhere, Britain’s exit from the European Union was in disarray after the implosion of Prime Minister Theresa May’s strategy left her under pressure from rival factions to leave without a deal, go for an election, or forge a much softer divorce.

Speculators increased their net long position in COMEX gold for the second straight week in the week to March 26, data showed on Friday.

“Speculative financial investors were caught on the wrong foot recently,” Commerzbank analysts said in a note, adding gold prices had, however, fallen consistently in the meantime.

Among other precious metals, spot palladium was down 0.1pc to $1,381.55 an ounce, having declined more than 11pc last week.

Silver fell 0.3pc to $15.08 an ounce, while platinum was up 0.3pc to $847.75 an ounce.

Published in Dawn, April 2nd, 2019