Gold retreats as stocks, dollar rally after China's trade data

[SINGAPORE] Gold fell as equities climbed and a gauge of the dollar rallied the most in three weeks, curbing demand for a haven.

Bullion for immediate delivery was at US$1,241.11 an ounce at 7.17 am in Singapore from US$1,242.47 on Wednesday, when prices fell 1.1 per cent, according to Bloomberg generic pricing.

Silver slipped to US$16.1972 an ounce after rising as much as 0.8 per cent a day earlier to US$16.3223, the highest since Oct 28.

Gold has risen 17 per cent this year after volatility in stocks and concerns on China's growth boosted demand for the metal as a haven and suggested the US Federal Reserve may slow interest rate increases.

Gains for bullion have slowed since early March amid optimism over improved prospects for equity markets and China's economy, with data this week showing the country's exports jumped the most in a year.

Global equities have now erased their 2016 losses, while the dollar made its biggest gain against a basket of 10 currencies since March 23.

"The global 'risk on' rally led to a stronger US dollar and equities, but weaker gold prices," Australia & New Zealand Banking Group Ltd said in a note.

"Firm Chinese trade numbers and stronger commodities-exposed equities means the markets saw greater chances of Fed 'normalization'."