Gold drifted lower on Friday in Asia as investors remained cautious ahead of this month's Federal Reserve review of interest rates.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 0.19% to $1,210.25 a troy ounce.
Overnight, gold inched down amid a relatively flat dollar, as the European Central Bank and OPEC ended a pair of closely-watched meetings on Thursday without enacting any major policy changes.
Gold is coming off its worst month of the year when the precious metal slid more than 5%, as investors have digested strong suggestions from the Federal Reserve that it will raise short-term interest rates at some point this summer. Nevertheless, gold is still up by more than 14% since the start of the year, holding onto gains from the strongest first quarter of a year in more than a decade.
Gold ended a quieter session slightly lower Thursday, in another narrow, two-sided trading affair. Some fresh economic news Thursday failed to significantly move the precious metals markets. August Comex gold was last down $1.70 an ounce at $1,213.00. July Comex silver was last up $0.098 at $16.02 an ounce.
Technically, August gold futures prices closed near the session low today. The gold bulls and bears are on a level overall near-term technical playing field as bulls have faded badly recently. Prices are in a four-week-old downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at today’s high of $1,220.00 and then at $1,225.00. First support is seen at $1,207.70 and then at $1,200.00.Wyckoff’s Market Rating: 5.0
Reference: Kitco, Reuters
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