COMEX Gold futures tumbled, sliding from a six week high as gains in equities hurt the sentiments. The metal tested a one week low near $ 1320 per ounce. Gold had gained on a frantic correction in equities and sliding Bitcoin futures. However, a recovery in equities and some solace on global trade wars helped calm the fear sentiments down and the metal eased as a result. Kin Mining NL continues to advance construction of its Leonora Gold Project (LGP) in Western Australia which is on track to achieve production in the December quarter of 2018. The project is forecast to produce at an average rate of 55,000 ounces of gold per annum from its JORC resource of 1.02 million ounces and JORC ore reserve of 373,000 ounces. The resources are spread across three deposits, Mertondale, Cardinia and Raeside – all which show good potential for resource growth. MCX Gold futures closed around Rs 30560 per 10 grams after hitting highs near Rs 31000 per 10 grams.
Upbeat global economic cues also weighed on the yellow metal. The US economic growth improved by more than previously estimated in the fourth quarter of 2017, according to a report released by the Commerce Department. The report said Gross Domestic Product (GDP) rose by 2.9% in the fourth quarter, reflecting an upward revision from the previously estimated 2.5% increase. Following the upward revision, the GDP growth in the fourth quarter reflects only a modest slowdown from the 3.2% spurt in the third quarter.
The Euro area is set to continue its expansion on global economic activity growth and export demand, according to Eurozone Economic Outlook jointly published by Ifo Institute, Italys statistical office Istat and the KOF Swiss Economic Institute. GDP is estimated to rise 0.6% each in the first and second quarters of 2018. However, it is expected to slow slightly to 0.5% in the third quarter. The main force behind the expansion in economic activity will be investment, driven by favorable financing conditions and still upward trending capacity utilization, institutes said. Private consumption expenditures are also expected to grow robustly still supported by the improvements in the labor market.