Gold hits nearly 2-week low
Singapore, January 25, 2013
Gold hit its lowest level in nearly two weeks on Friday, after upbeat data from the world's
top economies suggested a global recovery is gaining traction, sapping demand for the metal.
Spot gold is the only precious metal in the red so far this year, down 0.4 percent from the end of 2012, while precious metals with industrial applications, including silver, platinum and palladium, have all risen in tandem with investor confidence in the economy.
Manufacturing in China and the United States grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a swifter euro zone recovery.
Together with data showing a five-year low in US jobless claims last week, the data sent Standard & Poor's 500 index to a seven straight session of gains on Thursday.
"It now seems that the stronger tone in global equity markets, coupled with a notable easing in European and US market tensions, is leading to short-term pressure on gold," said Ed Meir, an analyst at INTL FCStone, in a research note.
"We think (this) will continue for a little while longer given that negative chart picture are also contributing to the sloppier tone," he said.
Spot gold fell to $1,663.11 an ounce, its lowest in nearly two weeks. By 0320 GMT, it pared losses to trade flat at $1,667.44, headed for a weekly decline of nearly 1 percent, its sharpest loss in about a month.
US gold inched down 0.2 percent to $1,667.30.
Though the 200-day moving average, at just below $1,663,
provided some support for spot gold, technical analysis suggested that prices could test the lower level of $1,661, and possibly ease to the Jan 4 low of $1,625.79 over the next four weeks. - Reuters
More INTERNATIONAL NEWS Stories
- UK jets escort Pakistan plane, 2 arrested
- HSBC urges regulators to speed up reforms
- US sees jump in durable goods orders
- UK co-op bank halts loans to customers
- Jet Airways posts $89m quarterly loss
- Top US banks 'involved in mortgage abuse'
- UK police ponder conspiracy after soldier murder
- Truck strike may have caused US bridge collapse
- Icahn seeks up to $7bn for Dell bid
- London attacker British, of Nigerian origin