Gold rose slightly today thanks to support from better than expected European data.
The UK’s Office for National Statistics (ONS) reported that sales volumes rose 1.8 percent in March following a 0.8 percent decline in February, while in Germany, the Ifo institute said its business climate index unexpectedly climbed to 109.9 this month from 109.8 in the previous month.
The bullish data lifted the euro, while dampening demand for safe haven assets such as the US dollar. Gold is seen as an alternative asset to the US dollar and tends to move inversely to the greenback.
However, another increase in Spain’s borrowing costs limited the yellow metal’s gains to just US$1 per ounce.
The euro zone’s fourth largest economy saw yields on its ten year bonds rise to near six percent today, adding to concerns that Spain may have to request an international bailout.
Gold traded at US$1,643/oz this afternoon, up US$1 from Thursday’s close. Silver declined 10 cents to US$31.70/oz, while platinum climbed US$2 to US$1,579/oz.
