Spot gold prices traded lower by 0.2 percent on Thursday. As upbeat sentiments in the global equity markets led investor to flock towards riskier assets.
Additionally, falling crude oil prices had also decreased inflation fears which reduced inflation-hedge demand for the yellow metal.
Prices touched an intra-day low of$ 1493.99/oz and closed at $ 1491.60/oz yesterday. Appreciation in the Rupee led gold to decline further on the MCX on Thursday.
China’s first quarter (01) gold output rose 4.6 percent (y-o-y) According to the Ministry of Industry and Information Technology.
China’s gold output in the first quarter of 2011 increased 4.63 percent to reach at 73.4 12 tonnes as compared the same period of 2010. Last year output stood at 340.88 tonnes which was up by 8.6 percent from 2009
Outlook
We expect gold to trade slightly higher today mainly taking cues from dollar weakness. But sharp gains will be capped due to positive sentiments in the global equity markets which would made gold less attractive for the investors.
