Commodities: Gold prices pare gains amid US data flurry

Gold prices rose on Thursday as buyers in China returned after the New Year break, but trimmed gains as a flurry of US economic data gave investors plenty to think about.

Gold futures for April delivery rose 0.63% to $1,209.10 an ounce, having pared an earlier rise after core US inflation figures and durable goods orders came in ahead of expectations.

Meanwhile, Brent futures fell 1.8% to $60.51 at the end of Tuesday’s session, while ICE WTI futures increased 3.6% to $48.92.

CMC Markets analyst Jasper Lawler noted: “There are modest signs of a recovery in global demand from the likes of Europe and China but in the US stockpiles are increasing rapidly as supply still outstrips demand.”

Over on LME, three-month copper futures rose 1.8% to $5,872.50 a tonne.

Lawler said: “Chinese equities came back strong after their New Year’s celebrations on speculation the government will do more to stimulate the flagging economy. Copper prices rose simultaneously on the prospect of improved demand from China."