Gold Prices Ease From 3-Week High As Dollar Jumps, Equities Rally

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A risk on rally in equities, pushed prices of gold lower, as positive data from across the globe was not good news for gold.

Gold fell below a three-week high as the dollar regained ground and equities climbed higher.

Spot gold in the international markets were trading marginally lower and eased by 0.2 percent at $1,252.10 an ounce.

Gold Prices Ease From 3-Week High As Dollar Jumps, Equities Rally
On Monday gold had seen a good rally of 1.4 percent.

There are not many triggers for the precious metal, though a risk-on rally across emerging market stocks, may push gold prices lower.

The US Fed may not act on interest rates later this month, which would be good news for gold.

Gold prices have had a steady climb since the start of the year. However, in the last few years, the precious metal has not gone anywhere.

Analysts say that unless there are geo-political tensions, it is unlikely that gold prices would move very fast.

Meanwhile, equity markets across the globe had a spectacular rally, after Chinese economic data, pointed to more solid exports. In fact, exports surged way ahead of most forecasts.
Asian markets led by the Shanghai Composite and the Hong Kong's Hang Sang, both saw spectacular gains in trade.

It is likely that gold may continue to trade in a range in the coming days.

Read more about: gold
Story first published: Wednesday, April 13, 2016, 11:46 [IST]
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