Gold prices slide on better-than-expected US economic data
A weekly market summary for gold, Feb 25-March 1
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GOLD prices weakened this week as market expectations shifted on better-than-expected US economic releases. US gross domestic product results for Q4 2018 stood at 2.6 per cent as business investments grew despite slowing growth projections. A rise in US bond yields from Fed Chairman Jerome Powell's posturing in Washington has supported greenback strength while placing negative pressure on the non-interest bearing asset.
In Asia, the indications are of signs of slowing economic growth as PMIs weakened in both China and Japan (Q1 2019). Chinese factory activities have pointed to a three-consecutive-month contraction as domestic demand and export orders fell in Feb 19. Japan has illustrated similar conditions as factories slash output on lagging demand. Gold prices though coming under bearish pressures from a resilient greenback will remain firm as investors deliberate on looming market risks in 2019.
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