Gold’s downward reaction from 1,0006.45 high on Feb 20 extends below 930 support line, as stronger Dollar triggered profit taking.
According to KBC Bank, Gold could remain at current levels unless bad macroeconomic news pus investors back towards it: “Traders said it may stay around current level as there was little to drive trade. However, a few bad global news and investors should seek safety in gold again.”
Furthermore, SPDR Gold Trust, the world's largest goldbacked ETF registered an outflow on Friday for the first time since january 8, while Demand for gold from jewellery buyers in traditional markets such as China and India remained weak, says KBC, nevertheless, the World Gold Council reiterated the Gold’s value as hedge in cases of high inflation, after the Bank of England approved the latest rate cut leaving interest rates in England at 0,50%.
