Gold jumped out of a tight trading range at the start of New York dealing On Friday and rose to 0.5% weekly gain at $1227/ounce as investment moved into “safe haven” assets because of the news of a sharp drop n US retail sales.
Gold’s price in Euro and Sterling also reversed the week’s near 2% drop and jumped above €32,600 per kilo and £844/ounce.
According to a note from Walter de Wet at Standard Bank, the gold market was very quiet after profit taking. However, there was a buying interest on dips which pegged support for the price of gold at $1210 with resistance at $1228.
According to Citigroup analyst David Thurtell, gold is likely to encounter repeated resistance at $1250 mark over the coming month. He also added that the seasonal period for buying in India is upon us, which will take some of the heat out of the market.
Consumer gold demand remained weak for the fourth day running according to the Economic Times of India. However, Mumbai dealers noted that the prices have eased because of the strengthening Rupee.