analysts surveyed by Bloomberg, 11 of 26 traders and analysts surveyed by Bloomberg expect gold to gain next week and six were neutral. Futures on the Comex in New York increased 5.1 percent to $1,647 an ounce this year. Prices gained the previous 11 years and holdings in gold-backed exchange-traded products are about 0.3 percent below the record 2,410.2 tons set March 13, data compiled by Bloomberg show.
That China data came on the heels of worries earlier this week that the country’s demand for metals such as iron is waning in the face of a slowdown in growth. Gold, normally a safe-haven asset, has been pressured recently along with other commodities. The metal is looking at a loss of under 1% this week.
Gold’s currently strong correlation to riskier assets continues to weigh on bullion as we touched over two-month lows in early trading yesterday,
Overall, despite a late price rebound last night, we still don't see sustained buying from here as investors remain extremely cautious while anemic physical buyers will also need to step up purchases at these lows,
Another pressure for gold, he said, is the continued strike by gold jewelers in India over the import duty hike. “We continue to trade against the dollar and more macro pressure here could still see some more small-scale losses for gold.” China, India rock gold, oil commodity markets
As for technical levels,drop below $1,640 on Friday would lead to a pullback to $1,610/$1,604.5. Aside from that, he sees gold trading sideways above $1,640, with the upside capped at $1,670/$1,680.
Among other metals Friday, May silver futures SIK2 +0.97% rose 46 cents, or 1.4%, to $31.80 per ounce. Copper for the same month HGK2 +1.21% rose 4 cents, or 1%, to $3.81 a pound.
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