Gold sits around $1242 after Strong U.S. Data and Optimistic Global Growth Prospects

Gold closed lower on Wednesday after strong U.S. data and optimistic global growth prospects prompted a rally in the dollar and equities, drawing interest away from the metal.

A disappointing U.S. jobs report last week stoked speculation the Federal Reserve would remain very cautious on the pace of its stimulus tapering. That gave a boost to gold, which hit a one-month peak of $1,255.00 an ounce in the previous session.

But strong U.S. retail sales on Tuesday, coupled with news the World Bank raised its forecast for global growth for the first time in three years, lifted the dollar and global shares to multi-month highs.


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