Gold prices fall

GOLD prices fell yesterday to hover near their lowest in over a week, as positive economic data from major economies stoked risk appetite, softening demand for safe-haven bullion.

Spot gold was down 0,3 percent at $1,284.53 per ounce, as of 1111 GMT. In the previous session, prices dropped to $1,281.96, their weakest since April 4.

gold futures shed 0,3 percent to $1,287.40 US “It’s a question of risk sentiment in financial markets. Equities are up, which is putting pressure on gold, traditionally seen as a safe-haven,”Julius Baer analyst Carsten Menke said.

“We’ve seen positive data out of China lately. That really supports the view of an improvement in the Chinese economy as well as the global economy, in turn supporting risk sentiment.”

China reported better-than-expected credit and export figures last week that allayed concerns regarding the pace of economic growth.

Jobs data from the United States last week also assuaged concerns that the world’s largest economy was losing momentum, with the number of Americans filing applications for unemployment benefits dropping to a 49-1/2-year low. Stock markets inched higher as the reassuring Chinese economic data helped investors shrug off disappointing bank earnings in the US, while volatility in European markets took another leg lower.

“Fast money remain . . . sellers on the day while longerterm bulls are tentatively on the bid above $1,280,”said Stephen Innes, head of trading and market strategy, SPI Asset Management.