This past Wednesday, gold eased up holding close to this year’s lows touched in the last session while data on economic growth from China alleviated concerns on global growth, driving investors into more risky assets.

Spot gold dropped 0.1% to $1,274.43/oz as of 12:40 p.m. It dropped after falling a drastic 1.2% on Tuesday to $1,272.70, the lowest it’s been since Dec 17.

Futures for U.S. gold settled $0.40 lower at $1,276.80.

Bart Melek, the head of commodity strategies at TD Securities said the useful Chinese data shows that concerns of a slowed global growth were primarily mitigated. It should increase risk appetite which would then pressure gold.

The economic growth of China in the first quarter stayed steady at 6.4%. The expectation was only for a 6.3% expansion.

This data increased the global appeal for more risky assets. It also pushed overall gains in the stock market.

However, according to analysts, a semi weaker dollar gave support to bullion.


What Chinese data shows for gold and other precious metals

Gold’s break beneath the psychologically significant mark of $1,300/oz and substantial other support levels signaled a continued downside to prices. That includes 100 and 50-day moving averages according to traders and analysts.

For the near term, it is possible for further weaknesses in gold to appear. They could potentially even test the $1,259 level that is likely to hold according to a research note by Commerzbank analysts.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 4.5% this year alone.

On the other side, gold seemed likely to rise towards $1,400 with silver possibly rising to $17/oz by the end of the year because the whole of this weak global growth could affect both risk appetite and equity prices according to Capital Economics analysts.

The note from the analysts continued saying they expect the risk appetite to increase slowly as the economy in the U.S. picks up.

Silver, meanwhile, went down 0.3% to $14.92/oz.

In the meantime, the spot price for palladium rocketed over 4% to an almost two-week high of $1,406.81/oz. The precious metal soared to its all-time-peak at $1,620.53 the previous month due to a severe supply deficit.

As for platinum, it rose 1.2% to $887.30.

Senior Commodities Strategist, Phillip Streible, at RJO Futures says that secure GDP data from China shows the economy beginning to hit back up again. He also says higher growth should see the economy expand. That means more demands for vehicles which boosts demand for platinum and pallidum.

Automakers primarily consume both these metals for the manufacturing of catalytic converters. Platinum, however, is used more in diesel vehicles that have since lost the public’s favor since the scandal of the Volkswagen emissions-rigging in 2015.