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BENGALURU. — Gold hit a three-week low yesterday, after falling more than 1 percent in the previous session, as investors looked to buy into rising equity markets rather than purchasing safe-haven assets. Asian stocks climbed to nine-month highs yesterday, helped by a pickup in capital inflows and a recovery in global oil prices, while the dollar stood strong on US equity market gains.
Spot gold fell 0,1 percent at $1 314,20 an ounce by 4.06am. It touched a low of $1 310,56 earlier in the session, its lowest since June 28. Bullion fell 1,2 percent on Wednesday. US gold was down 0,4 percent at $1 314,20 an ounce.
“Stock markets are moving up which is not good for gold. We expect prices to scale down a little more. I don’t think prices will stabilise before next week’s US Federal Reserve meeting,” said Lee Cheong Gold Dealers chief dealer Ronald Leung, in Hong Kong.
Spot gold has found a support at $1 313 per ounce, and may hover around this level temporarily before falling towards the next support at $1 298, according to Reuters technical analyst Wang Tao.
“Thin summer trading conditions may be as important a reason for gold edging lower than renewed expectations for a rate rise this year,” HSBC analyst James Steele said in a note. “In quiet conditions the gold market may gravitate to the vicinity of large round numbers, with $1 300 per ounce the closest and most obvious.” — Reuters.
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