Gold could be in for a rocky start next week following today’s break below the the technically important $1,180 per ounce level.
Gold for June delivery on the Comex division of the New York Mercantile Exchange ended down $19.30 at $1,175 per ounce, the lowest price since March 20. Trade ranged from $1,174.1 to $1,195.4.
“With no real fundamental case likely to be made for gold until the rate hike it’s possible that the metal will continue to bounce tepidly back towards the $1,155 support area again,” Triland Metal said in a report. “The big questions is whether a flush below will lead to the dramatic supply shocks that lurk sub $1,000 or whether the metal really is building up a solid base supportive of its super cycle theory.”
In US data today, core durable goods orders fell 0.2 percent in March, missing the forecast of an increase of 0.2-percent. But durable goods orders rose four percent, with analysts only expecting an increase of 0.7-percent in March.
Recent soft data from the US could delay the Federal Open Market Committee (FOMC) from raising interest rates from near-zero levels until later this year. The Fed’s next meeting takes place on April 28.
In US equity markets, the Dow Jones industrial average and S&P were both up 0.2 and 0.3 percent respectively, while the euro was up less than a cent at $1.0858 against the dollar.
Elsewhere, the Belgian NBB business climate fell 6.2 percent, missing forecasts for a 5.8-percent decline.
As for the other precious metals, Comex silver for May delivery closed down 19.3 cents per ounce – trade has ranged from $15.55 to $15.885. Platinum for July delivery on the Nymex fell $15.3 to $1,121.4, while the most actively traded palladium contract was at $770.25, up $0.35.
Light sweet crude (WTI) futures were down $0.75 or 1.4 percent at $56.95 per barrel in the most active contract.
(Edit by Tom Jennemann)
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