Gold Gives up Gains Amid Hopes of a Quick Recovery After Chinese Data

Gold prices erased their early gains today, as hopes for a faster economic recovery were supported by better-than-expected Chinese industrial production data, and pressure continued on the metal due to high US bond yields.

There was little change in the price of gold in the spot market at $1724.68 an ounce in Asian trading, and it had previously increased 0.4%. US gold futures rose 0.2% to $1,722.50.

The US dollar rose in support of the increase in US Treasury bond yields to a peak of more than a year, with continued optimism about the US economy after the US President signed a stimulus package worth $1.9 trillion.

Encouraging growth data also limited the appeal of the safe-haven mineral. Industrial production data in China showed growth accelerated in January and February, exceeding expectations.

As for the other precious metals, silver eased 0.1% to $ 25.89. Albiladboom fell 0.9% to $2,351.28, and platinum fell 0.2% to $1,202.62.