09.04.202110:37:00UTC+00Gold Dips On China Data

Gold prices fell on Friday as the latest inflation data from China surprised to the upside and boosted hopes of a swift recovery from the coronavirus pandemic.

Spot gold dropped 0.6 percent to $1,744.32 per ounce, after having hit its highest since March 1 at $1,758.45 an ounce on Thursday. U.S. gold futures were down 0.8 percent at $1,744.65.

Consumer prices in China were up 0.4 percent year-on-year in March, the National Bureau of Statistics said today. That exceeded expectations for an increase of 0.3 percent following the 0.2 percent contraction in the previous month.

The bureau also said that producer prices jumped an annual 4.4 percent in March - beating expectations for an increase of 3.5 percent and up sharply from the 1.7 percent gain a month earlier.

A rebound in the dollar and U.S. Treasury yields also weighed on gold prices, though the previous metal was still on course to register its first weekly gain in three.

During a debate on the global economy Thursday, Fed Chair Jerome Powell assured markets that the U.S. central bank will continue supporting the world's largest economy without stoking inflation.