efd-services (LIVE CHAT ) Gold edged up on physical buying on Friday but was on track for its biggest weekly fall since September as the dollar firmed after the U.S. Federal Reserve hinted at an interest rate hike in the first half of 2015. Bullion briefly touched a six-month high of $1,391.76 on Monday on tensions in Ukraine and concerns about growth in China before investors booked profits and turned their attention to safe haven U.S. dollar. Cash gold XAU= added $2.96 an ounce to $1,330.85 by 0700 GMT, having fallen to $1,320.24 on Thursday, its weakest since end-February. Low interest rates, which cut the opportunity cost of holding non-yielding bullion above other assets, had been a key factor driving bullion to all-time highs in recent years. I think the gold market has already shifted its focus back to the U.S. dollar and U.S. monetary policy outlook. The Fed is the main theme which is pressuring the market now, said Joyce Liu, investment analyst at Phillip Futures in Singapore. There are signs gold is supported at about $1,320 level, but I think the market is looking for direction. Although it has rebounded quickly, theres simply no impetus to go beyond $1,335. Its basically consolidating between $1,325 and $1,335.
Posted on: Fri, 21 Mar 2014 07:48:46 +0000
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