Gold held losses from a two-day decline on Tuesday on worries the Federal Reserve will hike U.S. interest rates earlier than market expectations and on outflows from bullion-backed exchange traded funds.
Spot gold XAU= was little changed at $1,215.55 an ounce by 2345 GMT, after dropping 1.4 percent in the past two sessions.
Gold continued mostly steady in Asia on Tuesday as investors await clearer signals on interest rates this week.
Boston Federal Reserve President Eric Rosengren, a usually dovish U.S. central banker, said on Monday it was "surprising" that futures markets currently imply only one or no interest-rate hikes this year, a prediction he said could prove "too pessimistic."
It was undermined by persistent outflows from SPDR Gold Trust (GLD), the top gold-backed exchange-traded fund.
Assets of the fund fell 0.29 percent to 815.72 tonnes on Monday. The fund last week experienced its first net weekly outflow this year, after climbing to its highest in over two years in March. [GOL/ETF]
Physical markets did not offer much support. India's gold imports in February fell 34 percent compared with the same period last year, news agency NewsRise Financial reported on Monday, citing a government official, as high prices and hopes for a cut in import taxes kept buyers away.
Gold prices ended the U.S. day session modestly lower Monday, amid an improving general world trader/investor risk appetite. There was no major, fresh fundamental news in the marketplace Monday to influence the precious metals. June Comex gold was last down $3.70 at $1,219.80 an ounce. May Comex silver was last down $0.091 at $14.955 an ounce
The key “outside markets” on Monday saw the U.S. dollar index weaker. The greenback hit a seven-month low late last week and dollar index prices are in a near-term downtrend. Meantime, Nymex crude oil prices were lower and hit a four-week low Monday. Weakening oil prices recently have had a negative impact on many other raw commodity markets, including the precious metals.There are growing notions that a major oil-producers’ meeting in mid-April will not produce a production-constraint agreement. Russia, Saudi Arabia, Iran and other smaller oil producers are scheduled to hold a meeting on April 17.
Technically, June gold futures prices closed near mid-range. Gold bulls have the overall near-term technical advantage, but are fading as a three-week-old downtrend is in place on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,246.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at $1,226.00 and then at Friday’s high of $1,237.20. First support is seen at the March low of $1,207.70 and then at $1,200.00. Wyckoff’s Market Rating: 6.0
Reference: Reuters, Kitco, Investing
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