NEW YORK (Dispatches) - Gold Prices retreated $10 per ounce from new 14-month highs in London on Friday after jumping sharply as new data from China showed the world's No.2 economy slowing sharply.
World stock markets slipped as China's main share index lost 0.8%.
Priced in Dollars, gold hit new 14-month highs above $1358 as major government bond prices also jumped, pushing U.S. Treasury yields back towards this week's 21-month lows at 2.07% per annum.
So-called 'core' inflation in U.S .consumer prices, excluding food and energy, came in at 2.0% annualized for May.
Gold then retreated to $1348 after U.S. retail sales data crept ahead of analyst forecasts for May, but the metal held at its highest in Euro terms since April 2017 above €1200 per ounce.
"The Chinese data was disappointing, especially the industrial output numbers," Reuters quotes Daiwa brokerage economist Chris Scicluna.
"That's given bond markets additional momentum."
Retail sales in China rose sharply in May, but below analyst forecasts, while fixed-asset investment slowed towards last autumn's multi-decade lows.
Industrial output across the world's No.2 economy showed its slowest growth since 2002 at 5.0% per year.
Shanghai gold prices rose to new 6-year highs at ¥305 per gram following the release of Friday's new data.
With the Yuan little changed on the FX market, that pulled the premium for gold landed in China over London quotes up to $16 per ounce, almost twice the average incentive for new gold imports into the metal's No.1 consumer nation.