Gold slips after promising China data


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 per cent on the week as the US 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 per cent to US$1,748.81 per ounce at 0655 GMT, having hit its highest since March 1 at US$1,758.45 an ounce on Thursday. US gold futures slipped 0.5 per cent to US$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 per cent 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.

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

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