Gold held below $1,300 an ounce as a lack of major economic data and no significant developments in the Ukraine crisis kept investor interest muted. Gold settled modestly higher near $1,295 an ounce on Tuesday as the dollar index rose and an industry report showed gold demand in major consumers China and India fell in the first quarter.
The World Gold Council said on Tuesday consumer gold demand in the world’s biggest buyer China fell 18 percent to 263.2 tons, with Chinese demand for gold coins and bars down 55 percent in the first quarter, offset only partially by a 10 percent rise in jewelry offtake.
“The WGC report would be consistent with our Standard Bank Gold Physical Flow Index, which indicates that Asia physical demand is trailing 2013 levels,” Standard Bank said in a note.
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