Early on Wednesday, the safe haven appeal of gold is waning following the release of a stronger than forecast industrial output reading from China even as US Treasury yields continue to strengthen and exert downward pressure on the yellow metal. At the time of writing, GOLD is trading at a little above $1,683.

Recent economic data releases from two of the most important economies worldwide – the US and China, are showing promising signs of recovery in the wake of the coronavirus crisis, causing gold to trade under pressure. While in the previous session, the US consumer confidence soared to a one-year high for the month of March, manufacturing and services activities across China also grew at a faster than expected pace, driving hopes for rapid economic recovery.

Gold is also trading bearish after recent comments from Fed officials point to the US economy and employment levels expected to post a sharp rebound by this summer. Thanks to President Biden’s assurances of a faster rollout of COVID-19 vaccines, 90% of adult Americans are expected to be eligible for the shot against the virus within a few weeks.

The safe haven metal slid further after the IMF planned to upgrade its global economic growth forecasts for the current year. Managing director at the IMF, Kristalina Georgieva, confirmed that following the 3.5% contraction in 2020, the global economy is expected to grow sharply through 2021 and into the next year as well.