GOLD steadied yesterday as gains in the dollar pulled the metal down from earlier highs and overall sentiment stayed with the bears as outflows from bullion funds showed no sign of slowing.
Gold was fixed at $1 164.50 an ounce (R419 246a kilogram) in London yesterday, R8 stronger than Tuesday’s final fix.
“The higher [intraday] low yesterday [on Tuesday] seems to have given gold a new lease of life, although no change in the overall negative sentiment will be seen unless we make it back above $1 180,” said Ole Hansen, Saxo Bank’s head of research.
Market participants were also digesting news that Swiss regulator Finma said it had found a “clear attempt” to manipulate precious metals benchmarks during its investigation into precious metals and foreign exchange market trading at UBS.
The metal hit a four-and-a-half year low of $1 131.85 last weak. There is strong resistance around $1 180, a key technical level that gold has been below since October. – Reuters