Gold prices plunged in the international market amid improvement in economic figures from Europe after China. The COMEX Gold Futures (GC) slipped below its previous day low of $1275.35 (Day’s low on 17th April 2019) to mark a new low of $1273.05.
Gold inched up previously over the fall in dollar prices amid better improvement in China’s economic condition as compared to the improvement in the United States economic condition.
The latest economic data suggested an overall improvement in the global economic conditions, which in turn, exerted pressure on gold prices and the prices breached its previous low of $1275.35, but the prices took a support and rebounded before breaching the recent low of $1272.20 (as on 16th April 2019).
The figures which contributed towards the fall in gold prices were the improved trade balance in Europe, which was previously in crisis amid trade disputes with the United States. The trade balance for Europe stood at 19.5B for February 2019, against the market expectation of 16.8B.
The improvement in the trade balance suggested the diminishing impact of the trade war, which in turn, exerted pressure on gold prices.
The factor which further weighed on the gold prices was the rise in the dollar. Dollar Index recovered from the level of 96.82 (Day’s low on 17th April 2019) to the present level of 97.3.
The Brexit concern which previously moved the strings on gold prices is currently out of the factors which hampered the gold prices in the international market, as the United Kingdom parliament is on vacation till 23rd April 2019
To further reckon the future direction of gold prices, the market participants are eyeing on an array of global data such as service and manufacturing figures from Europe, retail sales and manufacturing figures, Unemployment figures from the United States, all are due on 18th April 2019.
The Australian gold miners traded on a mixed note on the Australian Stock Exchange.
Many miners like Evolution Mining, Dacian Gold Limited, Regis resources traded lower during the day session.
Evolution Mining (ASX: EVN) started the day’s session at A$3.280, before falling to mark the day’s low at A$3.230. The stock slightly recovered before closing and closed at A$3.240, down by 2.99% as compared to its previous close.
Dacian Gold Limited (ASX: DCN) ended the day’S session on the day’s low at A$2.100, down by 3.67% as compared to its previous close.
Regis Resources (ASX: RRL) plunged 0.62%, settling at A$4.840.
Other miners such as Gold Road Resources, St Barbara traded higher during the day session.
Gold Road Resources Limited (ASX: GOR) marked a high of A$0.930, before settling at A$0.925, up by 3.35% as compared to its previous close.
St Barbara (ASX: SBM) ended the day’s session at A$3.130, up by 0.32% as compared to its previous close.
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