India: Gold drops on US economic data

Spot Gold settles the week at $1429.74 by losing 0.06%. The strong US economic data led investors to take profits after gold hit a record high of $1448.6. The same has been observed in futures in the COMEX and MCX division.
The Dollar Index remained strong at 76.21 to end the week by gaining 0.74% at the last session.
Global equities closed in positive. All Asian equities on an average advanced near one and a half while the DJIA and FTSE has also gained modestly.
The US economy grew at 3.1% annually in the Q4 FY10, attributed by a higher consumer spending.
Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund after sliding to 1213.95 tons remained unchanged.
The Gold Silver Ratio improved slightly to 38.49 from 38.39 as silver lost more than gold.
Outlook:
Currently at Globex platform gold is seen trading at $1427.30 up by 0.07% from its prior closing and the Dollar Index is showing bit strength over the majors at 76.3(+0.19%). The Asian equities are trading at a mix.
The improvement in US economy may curb the metal’s appeal as an alternative investment. Also, the treasuries yields are likely to increase for the as the US is ready to sell $35 billion of two year debt which may again put some pressure in gold.
Coming to the economic releases yet to be announced from the US are likely to be fair enough in terms of personal spending, income and Dallas Fed manufacturing activity which will be a negative catalyst for gold.
Overall, it is likely for gold to retreat a bit today on the back of a bright economic data expectation from the US which may drive the metal to release some tint.

(Source: http://www.commodityonline.com/futures-trading/technical/India-gold-drops-on-US-economic-data-22846.html)