Gold fell to its lowest since end-December on Thursday as indications that the global economy might not be as pain-stricken as previously feared prompted investors to take risks ahead of a slew of economic data. Spot gold eased 0.1 per cent to $1,272.16 per ounce by 0552 GMT, having fallen to $1,270.99 earlier in the session, its lowest since December 27.

The metal has so far lost about 1.4 per cent in the holiday-shortened week, and is on track for a fourth straight weekly decline. Most markets are closed for Good Friday on April 19. US gold futures lost 0.2 per cent to $1,274.50 an ounce. “What we see here is the moderation of some of the extreme concerns about the global growth outlook,” said Michael McCarthy, chief market strategist at CMC Markets. “Recent data over the last 10 sessions or so have eased concerns and safe-haven assets have been under significant pressure.”

Among a string of positive economic indications were data from both United States and China that tempered concerns about global growth and took the sheen off safe-haven bullion. China's economy grew at a steady pace in the first quarter, defying expectations of further weakness, while trade deficit in the US fell to an eight-month low in February, boosting the country's economic growth in the previous quarter.

The two counties have set a tentative timeline for the next round of trade talks and aim to conclude negotiations by early June, according to a Wall Street Journal report on Wednesday. “Gold prices continue to sag on better economic data broadly while trade optimism appears poised to finally deliver a deal by early June at the latest,” OANDA senior market analyst Edward Moya said in a note. “The yellow metal is also weaker from momentum on China's surprising better-than-expected GDP, retails sales and industrial production data.”

Asian shares remain close to a nine-month peak . Focus has now turned to the release of Purchasing Managers' Indexes (PMIs) for the manufacturing and service sectors in Europe later in the day to provide more cues on the strength of the euro zone economy.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were at 752.86 tonnes on Wednesday, still around their lowest levels since Oct. 27. Elsewhere, silver shed 0.3 per cent to $14.95 an ounce and platinum rose 0.2 per cent to $885.15. Palladium slipped 0.5 per cent to $1,394.35 an ounce, having jumped 3.9 per cent to a two-week high of $1,406.81 in the previous session.

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