Gold snapped a three-day rally on Tuesday as a stronger dollar offset gains from safe-haven bids prompted by a break down in talks between Greece and its creditors. Spot gold fell 0.5 percent to $1,224.75 an ounce by 0735 GMT. It gained about 1 percent in the past three sessions.
The dip comes on the last trading day before China heads for a week-long Lunar New Year holiday, after which prices could take a further hit as buying from the No.2 consumer tapers off.
"Some form of consolidation is expected to occur as Asian traders close out positions ahead of the long Chinese New Year holidays," said Howie Lee, analyst at Phillip Futures, adding that prices will range between $1,215 and $1,240.
Buying from China has been supportive of gold prices in the run up to the holiday, when the precious metal is bought widely for gift-giving. Premiums on the Shanghai Gold Exchange were firm at $3-$4 an ounce, indicative of robust demand.
Comments
Comments are closed.