Gold prices fall as US equity markets rally - ZENMoney

Gold prices fell due to a rally in US equity markets on the back of a downward revision in the growth rate of US gross domestic product which soothed investors' concerns over Federal stimulus programme. A stronger dollar against basket of currencies along with worries about a liquidity crunch in China pressurised the yellow metal further. The Indian government moves to curb gold imports added further concern.

Silver Prices fell during wednesday session as investors liquidated precious metals on the back of a rally in US markets after better than expected data comming from US along with stronger dollar which fuelled fears that the Federal Reserve would rein in its ultra-loose monetary policy.

Base metals prices fell on concerns about demand from China after the China's central bank failed to fully reassure investors fearing a credit crunch along with concerns over US monetary stimulus programme. A weaker euro against the dollar after the comments from European Central Bank president Mario Draghi capped the base metal prices further.

Brent Crude Prices rose after data pointing to weaker-than-expected US economic growth which eased fears that the Federal Reserve could soon wind down its stimulus plan along with a pledge by the European Central Bank to keep its economic support in place. Alarge build up in US gasoline inventories, buoyed by gains in the stock market and heavy spread trading supported the rise in Brent Crude prices.

Source : Equity Bulls

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