Gold prices decline on expectation of swift economic recovery
- 15 Mar 2021
Gulf Today Report
Gold prices slumped on Monday following unexpected Chinese industrial output data boosting hope of faster economic recovery.
Spot gold was little changed at $1,724.68 per ounce by 06:44 GMT while US gold futures were up 0.2% to $1,722.50.
Kyle Rodda, IG Market analyst said, "(Gold) bounced off really oversold levels, so we got some people just trying to buy the dip a little bit and take advantage of that.
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But, the short-term fluctuations tend to be aligned with the US dollar. No one knows where the US dollar is really heading at this point in time."
The positive growth in data has reduced the appeal of the gold. Earlier, data indicated that China’s industrial output grew in January-February, above expectation.
Gold prices fell to a nine-month low of $1,676.10 last week, pressured by accelerating bond yields, which increase the opportunity cost of holding non-yielding bullion.
Investors are now awaiting the US Federal Reserve meeting this week for direction on monetary policy.