Gold hang on around $1,200, worries of tapering still remain
Gold prices remain steady on Monday after its biggest weekly loss in a month, but the metal was still at the threat of falling back below $1,200 an ounce as investors fussed over the impact of a U. S. stimulus tapering.
Prices were supported in thin Asian trading as holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 5.40 tonnes to 814.12 tonnes on Friday - the first inflow since November 5.
Joyce Liu, an investment analyst at Phillip Futures Pte Ltd. Said, "There seem to be subtle shifts in sentiments for more bullishness after $1,200 was broken."
"However, the upside is limited due to year-end holiday season and with prices now treading close to $1,200, a break below that level may shift market sentiments back to bearishness."
Spot gold eased 0.1 percent to $1,201.25 an ounce by 0328 GMT. It increased 1 percent on Friday on short covering after losing 4 percent in the previous three sessions.
Last week gold fell 3 percent, after the Fed said the U. S. economy was strong enough to scale back its massive bond-buying stimulus, winding down an era of easy money that saw gold rally to an all-time high of $1,920.30 an ounce in 2011.
The metal has fallen nearly 30 percent this year on fears that a scale back of stimulus would hurt its inflation-hedge appeal. This year the decline of gold has seen its biggest fall in 32 years.
New Zealand News
- Porsche reportedly developing electric version of 718 sports car
- Tesla Model Y Performance becomes little bit more expensive to order in China
- Porsche’s recently unveiled Mission R Concept previews electric race cars of future
- Chinese manufacturer GAC’s Aion V e-SUV can charge 0-80% in just 8 minutes
- Plug-in cars’ share grows to 32% in Netherlands in September 2021
- Italian motorcycle racer Valentino Rossi enters e-bike business with VR46 MTB range
- Micro Mobility shows off production version of Microlino 2.0 and 3-wheeled e-scooter
- Chinese electric motorcycle maker Evoke Motorcycles to set up shops in Spain