Gold prices traded around $1308 near to the end of Monday that’s on the road to register the first negative daily closing in the previous three. The main culprit for the bullion’s drop was the stronger US Dollar whereas outflows at ETFs and doubts over future demand also added weakness into the yellow metal.
The US Dollar registered across the board strength during the first day of the week as investors rushed to the greenback in search of risk safety while sluggish data from rest of the major economies and doubts surrounding Sino-US trade deal loom.
At the economic front, British GDP growth for the fourth quarter of 2018 didn’t bode well and slipped past 0.3% forecast to 0.2%. The same added worries concerning the health of the global economy when US-China trade protectionism have already had a bitter impact to witness. The SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, registered consecutive five days of outflows during the last week.
While challenges to global growth dim physical demand of the yellow metal, rising USD added downside pressure on the commodity that’s traded in the greenback. As a result, the gold prices are struggling to justify their safe-haven appeal in recent days despite global economic pessimism.