PRECIOUS-Gold near 4-month low as China GDP fuels risk sentiment

* China Q1 GDP at 6.Four pct vs analyst expectations of 6.three pct

* Gold has fallen by about 5 pct from Feb excessive

* SPDR Gold holdings fall to close six-month lows (Updates costs)

By Arijit Bose

April 17 (Reuters) – Gold costs edged greater on Wednesday because the greenback weakened, however the metallic stayed close to a four-month trough as better-than-expected financial readings from China lifted Asian shares and sharpened danger urge for food.

Spot gold was up zero.2 % at $1,278.50 per ounce as of 0744 GMT, after having fallen as a lot as 1.2 % to $1,272.70, its lowest since Dec. 27, within the earlier session.

U.S. gold futures have been up zero.three % to $1,281.20 an oz..

The greenback index fell zero.2 % after knowledge confirmed that China’s tempo of financial development within the first quarter remained regular at 6.Four %, beating expectations for a 6.three % growth.

The information, which signalled that Beijing’s latest stimulus drive may be paying off, additionally swung Asian shares greater.

“With the (Chinese language) knowledge that we’ve obtained, it actually provides a little bit of a draw back to gold from right here,” mentioned IG Markets analyst Kyle Rodda.

“The truth that we’ve damaged under the important thing $1,280 stage would possibly make it tough for costs to get better.”

The metallic has fallen by about 5 % since its February excessive of $1,346.73 an oz. and is buying and selling under its 50 and 100-day transferring averages, which, analysts say signifies additional weak point.

“Indicators of progress in U.S.-China commerce negotiations and robust U.S. financial knowledge have additional bolstered danger appetites for the reason that begin of the second quarter,” Phillip Futures analyst Benjamin Lu mentioned in a word.

“The valuable metallic appears to be like poised to bear a bearish correction amidst rising draw back dangers within the close to time period,” the word added.

Gold, a non-yielding asset for buyers seeking to hedge in opposition to instances of financial and political uncertainty, loses enchantment when interest-yielding equities rise.

A gauge of buyers’ curiosity within the metallic, holdings of SPDR Gold Belief, the world’s largest gold-backed exchange-traded fund, fell to a close to six-month low of 752.27 tonnes on Tuesday.

Elsewhere, silver gained zero.7 % to $15.08 an oz..

Spot platinum rose 1.three %, to $887.50 per ounce, whereas palladium additionally climbed 1 % to $1,363.45.

The latest weak point in palladium costs was instigated by a conjunction of profit-taking and poor automobile gross sales knowledge in China and the U.S., Metals Focus mentioned in a word on Tuesday.

Nevertheless, analysts at Normal Chartered count on provide deficit which had earlier pushed the metallic to a file excessive of $1,620.53 final month, to deepen via this yr and in 2020. (Reporting by Arijit Bose in Bengaluru; enhancing by Richard Pullin and Shreejay Sinha)

Our Requirements:The Thomson Reuters Belief Ideas.

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