Gold slips as investors’ appetite for risk returns

Bengaluru — Gold prices eased on Monday as stock markets rallied after upbeat Chinese economic data soothed some concern about the global economy and boosted risk appetite, although losses were limited by a sliding dollar.

Spot gold was down 0.1% at $1,290.16 per ounce by 11.48am GMT, after touching its lowest since March 8 on Friday at $1,286.35.

US gold futures fell 0.2% to $1,295.40 an ounce. “We have a positive environment in the equity markets so risk is on and that’s a negative for gold,” Julius Baer analyst Carsten Menke said.

Global stocks surged on strong Chinese factory activity data and signs of progress in US-China trade negotiations.

The dollar index was lower, however, limiting gold’s losses as it makes holding the metal cheaper for buyers holding other currencies.

“We have to look through the noise and at the bigger picture. We still think the global economy is slowing in the 12-18 month horizon, especially in the US, which should help gold in the longer term,” Menke said.

Gold has gained more than 11% since touching its lowest in about one-and-a-half years last August, on a dovish US Federal Reserve and global growth concerns.