Gold drifted lower on Tuesday as traders took profits from recent gains, but the safe-haven metal held not far off 3-1/2 month highs due to a weaker US dollar and concerns over global economic growth. Bullion is up 10 percent this year - after losing nearly a third of its value in 2013 - as outflows from gold-backed funds slow and equities weaken due to emerging market jitters.
Gold gained for three straight sessions through Monday, following weak US economic data that also boosted silver. Spot gold slipped 0.8 percent to $1,317.31 by 0732 GMT, after hitting $1,332.10 earlier in the session - its highest since October 31. Silver also fell but wasn't too far from a 3-1/2 month high of $21.96 hit on Monday. "Both gold and silver have good momentum, so expect the dips to be shallow and supported," said one Hong Kong-based precious metals trader. "Realistically expect a pullback that will run into good buying before the next move higher."
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