Gold tumbled nearly 1 percent on Monday after a short-covering rally in the previous session boosted by US jobs report weaker than expected.
Even though a jump of 3 percent was last Friday, gold held below a level of $1,180 an ounce clue that it would put pressure on the metal back to 4-1/2-year low levels last week in a strong US dollar and fears concerning a future rate hike by the Federal Reserve of the United States.
Spot gold dropped as much as 0.9 percent to $ 1168.10 before bouncing slightly to trade around $ 6 to $ 1172.99. It remained for $ 1131.85 was last Friday – its lowest level since April 2010 – before rallying to post mostly one-day rise in five months.
Gold for delivery in December added 0.2 percent to $ 1172.60 Oz on the Comex following the asset price rose to $ 1,179 on November 7, the highest level since October 31.
Bullion paused two weeks of losses last weekend after registering an increase of 3.2 percent on Nov. 7 was the biggest advance within a day since June. Prices surged even as holdings in the SPDR Gold Trust fell for the fourth day since at least September 2008. US employers added 214,000 workers in October, losing 2,35,000 gain anticipated by economists and submitting the dollar index points below from a five-year high.
Profiteers cut their bullish bets in US gold futures and options at their lowest level within four weeks, said Trading Commission Commodity Futures Friday.
The analysts and traders polled by Reuters forecast that gold prices could drop to $ 1,000 at the end of the year, for the first time since 2009.
The case vs. Gold comes from a stronger US dollar, a robust equities market and US economy improves – a factor which could also lead the Fed to monetary tightening.
“In the US unemployment rate has been the lowest since 6 years. As lowest unemployment rate in the US, Gold has come under pressure on comex, in New York. Comex gold price remains around $1170. Gold is trading sluggish on domestic market, but silver has gone up as well. MCX gold is sensed with marginal gains of 0.1 per cent to Rs 25,960. With 0.7 per cent gains, while silver is trading above Rs 35,000.” 100McxTips experts said.
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