The gold price remained steady above $1,200 on Monday Asian trade with the strong close last week helping the market to remain firm.
Gold price ended Friday higher despite the dollar index rising to a near three-weeks high at 99.37.
The spot gold price was last at $1,204.40 per ounce, declining $4.50 on Friday’s close. Trade has ranged from $1,203.80 to $1,209.60.
“A relatively strong close towards the week for gold as late short coverings pushed it back above $1,210 cash briefly in NY session. Profit taking and good selling interests above $1,200 remain the dominant theme amongst most macros and investors,” said a note from Commerzbank.
However, the precious metal may be entering a seasonally-low period where physical demand may weaken, analysts said.
Poor weather impacting farmers’ income in India is said to cause a slowdown in physical gold demand and “further price action may be inspired more so by macro-related activities as oppose to physical demand”, said analyst James Steel from HSBC Securities.
In data, trade balance out of China this morning saw the number shrinking to $3.1 billion compared to an estimated $43.4 billion and February’s $60.6 billion. This was a 95 perecent decline, and its lowest since a year ago.
Investors will gain further clarity on the health of China’s economy this week with a data-heavy calender from China. New loans and M2 money supply is set to be released some time between 14 and 16th April, key quarterly GDP data, industrial production numbers, retail sales and fixed asset investment data will be published on Wednesday as well.
In the other metals, silver was last at $16.40 per ounce, slipping eight cents. Platinum at $1,165 was down $7 and palladium slipped $3 to $772 per ounce.
The post Gold price stays afloat above $1,200, weakening physical demand ahead appeared first on The Bullion Desk.
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