Gold languished near a four-week low on Thursday, retaining sharp overnight losses, as strong US economic data and outflows from bullion-backed exchange traded funds sapped investor interest. Spot gold was little changed at $1,106.10 an ounce by 0637 GMT, after losing 1.4 percent in the previous session - its biggest daily drop since July 20. The metal slid to $1,101.11 on Wednesday, its lowest since August 11. US gold was up 0.3 percent at $1,105, but largely holding on to a 1.7 percent drop overnight.
Gold could see further weakness leading up to the Federal Reserve policy meeting on September 16-17, traders said. Prices could head back towards July lows as bullion broke through some key technical levels in Wednesday trade, said analysts at ScotiaMocatta. The July low of $1,077 for spot gold was the weakest since February 2010. "The $1,100 level should prop up gold during Asian trade today as physical names look to snap up the metal at these levels," said MKS Group trader Sam Laughlin.
Comments
Comments are closed.