Gold heads for biggest weekly drop since Dec
Singapore, February 15, 2013
Gold extended losses to its weakest in more than a month on Friday, heading for its biggest weekly drop since December as a weakening euro and equities prompted investors to sell bullion to cover losses.
Focus is on the outcome of a G20 meeting, which could influence currencies after data showed the euro zone slipped deeper into recession in late 2012 than had been expected, sending the euro to a three-week low versus the US dollar.
Gold hit a trough around $1,629 an ounce, its weakest since early January, and stood at $1,632.91 by 0402 GMT, down $1.55.
"It looks bearish at this time, so we might see $1,600. (But we first) have to breach $1,625," said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore, adding that there was no physical buying from China.
"Hopefully, next week when China comes in, we will see more support on gold."
China's stock, money, foreign exchange and commodities futures markets reopen on Monday after the Spring Festival holiday marking the Lunar New Year.
Gold ended up around 7 percent in 2012 - its 12th straight year of gains in one of the longest bull runs ever for a commodity.
But worries over appetite for the metal emerged after the World Gold Council said on Thursday that global demand fell last year for the first time since 2009 as jewellery buying abated in the key Indian and Chinese markets, and as US and European coin and bar investment dropped.
US gold fell $2.50 an ounce to $1,633.00 on Friday.
The euro nursed heavy losses on Friday, while shares in Asia eased with investors turning cautious as the weak euro zone growth data presaged the G20 meeting in this session and on Saturday in Moscow. - Reuters