- Gold tumbled more than two percent on Monday, pulling further away from its highest in a year, as a rebound in stocks and profit-taking from China after the Lunar New Year weighed on the market.
- Goldman Sachs recommend selling gold, 3-month target is $1100 and in 12 months they see it at $1000, after gold is around $1208 bucks now from $1260 highs last week.
- Gold prices are starting the week under modest pressure as U.S. markets are closed for the Presidents Day long weekend.
After seeing its best week since 2011, gold hit a low of $1,202.7, Monday, in a light trading activity. In electronic trading, April Comex gold futures last traded at $1,203.20 an ounce, down $36.20 on the day.
The selling pressure Monday, is a continuation of the activity seen overnight during the Asian trading session as Chinese markets opened after being closed all week for Lunar New Year Celebrations.
Analysts weren’t surprised with the selling pressure during the Asian trading session. Sam Laughlin, precious metals trader at MKS Precious Metals, noted that when Chinese markets closed last week, prices were $60 lower.
Although gold is starting the week on the back foot, most analysts remain confident that the yellow metal can hold on to its renewed momentum. Many analysts noted that gold could fall to $1,200 and still maintain its current uptrend.
In a recent interview with Kitco News, Bill Baruch, senior commodity broker at iiTrader, said that he would be a buyer of gold on dips as prices remained above $1,180 an ounce. A break below that support level would negate the latest rally, he noted.
Reference: The News, Kitco, Forexlive
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