Gold broke below the key psychological level of $1,300 an ounce on Thursday as safe-haven demand for the metal eased due to rising Asian equities and strong Chinese manufacturing data.
Physical demand in the region, however, increased slightly on the lower prices, with premiums in the biggest bullion consumer China edging up on buying interest.
Physical demand in the region, however, increased slightly on the lower prices, with premiums in the biggest bullion consumer China edging up on buying interest.
Spot gold fell 0.6 per cent to $1,296.50 an ounce by 0319 GMT, after dipping 0.2 per cent in the previous session. US gold slid about $7 to $1,297.80.
Asian stock markets edged broadly higher on Thursday as China's factory activity expanded at its fastest pace in 18 months in July, bolstering hopes for recovery in the world's second-biggest economy.
Asian stock markets edged broadly higher on Thursday as China's factory activity expanded at its fastest pace in 18 months in July, bolstering hopes for recovery in the world's second-biggest economy.
Gold had recently seen support build around the $1,300 level on deepening violence in the Middle East and Ukraine that burnished its safe-haven appeal. The metal is seen as an alternative investment to riskier assets such as equities during times of uncartainties.
Bullion could still see some safe-haven bids as Gaza fighting raged on Wednesday, displacing thousands more Palestinians in the battered territory as US Secretary of State John Kerry said efforts to secure a truce between Israel and Hamas had made some progress.
Bullion could still see some safe-haven bids as Gaza fighting raged on Wednesday, displacing thousands more Palestinians in the battered territory as US Secretary of State John Kerry said efforts to secure a truce between Israel and Hamas had made some progress.
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