PRECIOUS-Gold holds ground on weak Europe data; firm dollar caps gains

* Gold costs down over 1 % up to now this week

* U.S. retail gross sales boosts greenback

* Palladium eyes finest week in 5; platinum hits week excessive

* GRAPHIC-2019 asset returns: (Updates costs, provides feedback)

By Brijesh Patel

April 18 (Reuters) – Gold steadied on Thursday as weak manufacturing information out of Europe kindled some issues over world development, however bullion held close to a four-month low, pressured by positive factors within the U.S. greenback on information exhibiting sturdy U.S. retail gross sales.

Spot gold was up zero.1 % to $1,275.39 an oz. as of 10:42 a.m EDT (1442 GMT), having fallen to its lowest since Dec. 27 at $1,270.63 earlier within the session. U.S. gold futures rose zero.1 % to $1,277.50.

The metallic has up to now misplaced greater than 1 % within the holiday-shortened week and was on observe for a fourth straight weekly decline.

Most markets are closed for Good Friday on April 19.

“Gold is up barely on short-covering for the weekend and on weak manufacturing information from the euro zone, but it surely’s barely holding in the present day as a result of the greenback index is over the 97 mark and retail gross sales had been uninflationary,” stated George Gero, managing director at RBC Wealth Administration.

Euro zone companies began this quarter on the again foot, with development unexpectedly slowing once more, surveys confirmed.

Nevertheless, gold’s positive factors had been capped by a stronger greenback, with the U.S. forex rising in opposition to a basket of six rivals after U.S. retail gross sales elevated by probably the most in 1-1/2 years in March, indicating financial development picked up within the first quarter after a false begin.

A stronger greenback makes gold costlier for traders holding different currencies.

“Gold has had the viscosity of molasses lately the place market expectations for follow-on strikes after technical indicators are regularly dissatisfied,” stated Tai Wong, head of base and valuable metals derivatives buying and selling at BMO.

“If gold can maintain lows after this uncommon optimistic shock, it signifies promoting strain at present ranges could also be restricted and we could possibly be close to the underside of the vary.”

Additionally on traders’ radar will probably be developments within the world commerce entrance, with the U.S. and China aiming to conclude negotiations by early June, the Wall Avenue Journal reported on Wednesday.

Amongst different metals, silver fell zero.16 % to $14.97 per ounce.

Platinum rose 1.1 % to $892.50, having hit its highest in a few week, at $894.30.

Palladium gained zero.5 % to $1,409.01, having earlier climbed to its highest in two weeks at $1,417.50, placing the autocatalyst metallic on observe for its finest week in 5.

“Positive, stronger Chinese language financial system may result in extra demand however that is likely to be months down the street. The deficit actually remains to be there however the close to time period imbalances appear to be easing,” BMO’s Wong stated.

China’s financial development within the first quarter remained regular at 6.four %, topping expectations for a 6.three % enlargement, which analysts stated may have pushed palladium’s leap on Wednesday. (Reporting by Brijesh Patel in Bengaluru; Modifying by Bernadette Baum)

Our Requirements:The Thomson Reuters Belief Rules.

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