Spot gold targets biggest weekly loss in four months.
Spot gold steadied on Thursday but was still facing its biggest weekly loss since early November after slipping around 2 percent in the previous session as hawkish comments by Federal Reserve officials fed a dollar recovery.
* Spot gold edged up by 0.2 percent to $1,222.56 an ounce by 2342 GMT. Gold on Wednesday fell as low as 1,215 an ounce, its weakest since Feb. 26 and was on track for a 2.6 percent weekly loss ahead of the Easter holiday break which starts on Friday.
* U.S. gold slipped 0.2 percent to $1,222.20.
Spot gold has fallen about two per cent, one of its deepest declines of the past year, as the US dollar strengthened following hawkish comments by Federal Reserve officials on the path of US interest rates.
Bullion tumbled to its lowest in a month, reversing the gains made the previous day when investors sought "safe haven" assets after deadly bomb attacks on Brussels.
Gold prices ended the U.S. day session sharply lower and hit a three-week low Wednesday. The safe-haven metal was shunned on this day as worldwide investor and trader risk appetite has up-ticked at mid-week. Also, the key “outside markets” were in a bearish posture for the precious metals today, as the U.S. dollar index was higher and crude oil prices were lower. April Comex gold was last down $24.70 at $1,223.90 an ounce. May Comex silver was last down $0.61 at $15.27 an ounce.
Technically, April gold futures prices closed nearer the session low today. Gold bulls still have the overall near-term technical advantage, but are fading. A nearly three-month-old uptrend on the daily bar chart was negated today. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,260.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at $1,230.00 and then at $1,240.00. First support is seen at today’s low of $1,215.40 and then at $1,210.00. Wyckoff’s Market Rating: 6.0
Reference: Business News, Kitco, Reuters
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