Find out the main drivers for this week
Gold goes down as improved economic surge output spurs risk appetite
On Thursday, the yellow metal headed south in Asia due to the fact that recent economic data indicated an improved economic surge outlook and also put pressure on the safe-haven commodity.
As a matter of fact, on the Comex exchange, June delivery gold futures decreased by about 0.2% concluding the trading session at $1.273.75 an ounce.
This week, the yellow metal has dived over 1%, and it has found itself on track for a fourth straight losing week. By the way, the vast majority of financial markets are going to be unavailable on April 19 due to Good Friday.
Aside from that, the Chinese economy managed to expand more than anticipated in the first quarter of this year. That’s what official data disclosed on Wednesday. Besides this, Chinese retail sales and industrial output also turned out to be better than anticipated.
As for credit and trade data, which showed up on Friday, it beat forecasts too.
In fact, the generally upbeat Chinese data suggests that the fears of a deceleration in global surge have been mitigated to a great extent that should back risk appetite, as some financial analysts pointed out.
Aside from that, the data has also underpinned bond gains, thus making the most common safe-haven alternative to the yellow metal more attractive.
Investors’ immediate focus is going to switch to the publication of Purchasing Managers Indexes for the service and manufacturing sectors in the European bloc later in the day.
Moreover, the currency pair AUD/USD managed to head north by about 0.2% ending up with a reading of 0.7187 after the publication of the data.
The currency USD/JPY lost 0.1% hitting 111.93.
The price for WTI has risen to its highest levels since the beginning of May.
On Wednesday, the yellow metal managed to extend gains for the fourth consecutive day, while other metals are going down…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.