Gold climbed in New York on Friday, erasing earlier losses, as equities tumbled worldwide, boosting demand for the precious metal as a safe heaven. The metal declined 7.3 percent last week and is heading for a 17 percent drop this month, the worst such performance since March 1980
But on weekly basis Gold futures fell below $700 mark an ounce for the first time in 13 months, as fund liquidation and the U.S. dollar's rise. Investors sold off the precious metal favour of equities and sharp fall in oil prices. Gold is often seen as an investment safe haven whose prices tend to rise when the economy falls into troubles, but its recent slumps have challenge conventional wisdom.
The U.S. dollar continued its rally last week, putting more pressures on gold. A rising dollar tends to reduce gold's appeal as an investment alternative. The decline in the gold price is not only linked to a further strengthening in the U.S. dollar but also evidence that physical buying of gold via ETFs is beginning to fade.
A t the same time according to the report form U.S. Labor Department, jobless claims were up 15,000 last week to 478,000, more than expected.
International spot gold traded in the range $741.20
- $680.80 a Troy Ounce and last quoted at $733.30.
Weekly Outlook (DG. OCT.)
Expecting a bullish movement in gold above $753.60 otherwise remains weak; Resistances are $ 762, $777, $ 793, $812. Supports are $ 734, $715, $ 696, $683,659 and $633.
Last day DGCX Gold Dec. traded in the range $751– $683.5and closed at $731.30
