Gold recovers as ETP Rout lengthen to 17th week

By HY Markets Forex Blog

Gold recovered from previous losses in the day, as the yellow bar was trading higher on Friday. The US unexpected and improved labor and consumer data assisted to improve with impacts of the import duty implemented in India gained stronger profits for gold.

Gold futures were trading at a high 0.51% to $1,348.80 an ounce, while the silver metal was trading at 0.42% to $21.680 an ounce, both as of 6:14am GMT. The US dollar index went to a high 0.04% to 80.73 at the same time.

Investor reduced in holdings in exchange-traded products for the 17th week, as assets went down to 11.2 tons this year.

According to reports from India’s Finance Ministry, the reports shows that Gold imports in India, the world’s largest consumer, dropped by an average $36 million a day in the 14 business days, compared to previous records of $135 million a day through 13 days until May 20.

Analysts claim that the main reason of the loss was the increase in tax and restrictions on financing shipments.

The World Bank predicts a slower growth in the global economy, as the growth risks in developed countries are receding with the structural transformation being needed in less advanced countries to regain rapid growth.

The global gross domestic product (GDP) is predicted to increase by approximately 2.2% this year.

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