Gold rose nearly one percent on Friday, rebounding from three-week lows as weaker prices attracted bargain hunters and a recovery in oil lifted bullion’s appeal as an inflation hedge.
But gold was expected to face downward pressure again after falling nearly 15 percent from last month’s record high. Near-term sentiment had also turned bearish it broke its 100-day moving average of just above $900 an ounce this week, they said.
Spot metal fell as low as $877.60 an ounce before rising to a high of $896.50. It was quoted at $887.50/888.50 against $885.25/ 886.45 in New York late on Thursday. Gold futures for June delivery on the COMEX division of the New York Mercantile Exchange was up $4.30 an ounce to $893.70 an ounce.
Analysts said bearish market sentiment was also evident from large withdrawals from exchange-traded funds. Gold held in New York-listed StreetTRACKS Gold Shares, the world’s largest gold-backed ETF, fell about 50 tonnes to 591 tonnes in the last two sessions.
A firmer dollar makes gold costlier for holders of other currencies and often lowers bullion demand. The metal is also generally seen as a hedge against oil-led inflation. In other precious metals, platinum partly recovered after falling to a three-week low of $1,907 an ounce. It was last quoted at $1,935/1,950, still down from $1,961.50/1,971.50 late on Thursday. It hit a record high of $2,290 on March 4.
But gold was expected to face downward pressure again after falling nearly 15 percent from last month’s record high. Near-term sentiment had also turned bearish it broke its 100-day moving average of just above $900 an ounce this week, they said.
Spot metal fell as low as $877.60 an ounce before rising to a high of $896.50. It was quoted at $887.50/888.50 against $885.25/ 886.45 in New York late on Thursday. Gold futures for June delivery on the COMEX division of the New York Mercantile Exchange was up $4.30 an ounce to $893.70 an ounce.
Analysts said bearish market sentiment was also evident from large withdrawals from exchange-traded funds. Gold held in New York-listed StreetTRACKS Gold Shares, the world’s largest gold-backed ETF, fell about 50 tonnes to 591 tonnes in the last two sessions.
A firmer dollar makes gold costlier for holders of other currencies and often lowers bullion demand. The metal is also generally seen as a hedge against oil-led inflation. In other precious metals, platinum partly recovered after falling to a three-week low of $1,907 an ounce. It was last quoted at $1,935/1,950, still down from $1,961.50/1,971.50 late on Thursday. It hit a record high of $2,290 on March 4.
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