Gold closed lower for the tenth straight session as prices teetered near the lowest price since April 2010.
Gold for August delivery on the Comex division of the New York Mercantile Exchange declined $12.00 to $1,091.50 per ounce.Trade has ranged from $1,085.60 to $1,102.30.
“Gold rallies continue to be well offered at technical levels despite the unanimous bearish sentiment,” Triland Metals said. “In normal circumstances, we would expect this to induce large short covering rallies but they remain tepid and the metal is threatening the recent flushed low at $1,080.”
Triland wouldn’t provide an exact timetable for the possibly recovery, but indicated that producers could signal the bottom for investors.
“We may be entering the last phase of this bear phase from the $1,920 highs but it’s tricky to call any bottom just yet; let’s wait until mines start to hedge below 1,000,” the broker added.
Gold outflows continued from ETF funds simultaneously. In funds tracked by FastMarkets, holdings have again set a new 2015 low at 1,573 tonnes.
US existing home sales in June hitting 5.49 million, above the forecast of 5.4 million and the highest since February 2007. US HPI in May undershot expectations with a 0.4 percent rise, off the 0.5 percent consensus.
In Asia, Chinese CB leading index month-over-month in June was up one percent, slightly below the previous reading of 1.1 percent. Japanese industrial activity month-over-month in May was in-line with estimates of a 0.5 percent decline.
Turning to equities, the Dow Jones industrial average and the S&P were down 0.5 percent and 0.3 percent respectively, while the dollar was 0.3 percent stronger at $1.0906 against the euro.
As for other precious metals, Comex silver for September delivery fell five cents to $14.735 per ounce. Trade has ranged from $14.585 to $14.865.
Platinum for October settlement fell $8.60 to $975.70, while the most actively traded palladium contract was at $625.55, down $3.90.
(Editing by Tom Jennemann)
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