Gold price holds below $1,590 after upbeat US data
Spot gold was little changed at $1,586.34 an ounce by 0409 GMT. Indications that the global economy, led by recent positive data from the United States, is on a better footing this year has driven investors away from gold, with spot prices down 5 percent this year.
U.S. gold was similarly steady at $1,585.50 an ounce in midday trade.
"We already initiated a sell gold recommendation last December," said Henry Liu, head of commodity research at Mirae Asset Securities in Hong Kong.
"As long as the U.S economy is coming back we do not think gold prices can rise." The U.S. dollar hovered near seven-month highs against a basket of currencies on Thursday after bullish U.S. retail sales data fanned hopes the economy can cope with the tax hikes and spending cuts that kicked in this year.
U.S. retail sales expanded at their fastest pace in five months in February, the latest sign of momentum for an economy facing headwinds from higher taxes and pricier gasoline.
But output at factories in the euro zone fell more than expected at the start of 2013 and production in France and Germany slipped in the latest sign the bloc is struggling to emerge from recession.
Reflecting a lack of conviction in the gold market,
Be the first to comment.