19 January 2016 at 14:08 GMT
- Gold drifts lower as demand for equities picks up
- Improved risk appetite boosts industrial metals
- Funds' gold futures positions revert to neutral
- Gold in a $1,075 to $1,100/oz range
- Silver's range is between $13.76 and $14.30
By Ole Hansen
Gold drifting lower in response to renewed demand for stocks following the Chinese data overnight. Q4 GDP figures was in line with estimates while robust private consumption highlighted that the transformation of the Chinese society to a consumer-driven economy is well under way.
The better risk sentiment has given industrial metals a boost which silver, platinum and especially palladium have managed to benefit from.
Platinum and palladium taking some comfort from Chinese economic data
Funds have returned their gold futures position to neutral from a record short at the beginning of the year while gold holdings in exchange-traded products have seen a continuous rise since hitting a multi-year low on January 6.
Gold has settled into a $1,075 to $1,100 range within the one-month-old uptrend. Silver, on the other hand, continues to hover around $14 with its room for manoeuvre being increasingly capped, currently between $13.76 and $14.30.
Source: Saxo TraderGO
– Edited by Clare MacCarthy