Credit Suisse’s technical team said gold remains in a medium-term bear trend.
Gold investors appear as confused as everyone else by teh battle between Greece and its creditors.
After a brief rally, the price was heading lower again as despite all of the bluster commentators said a compromise remained the most likely outcome.
Any likelihood of a Greece default and contagion to other parts of the eurozone would boost gold’s safe haven appeal, but the market seems to be dismissing this possibility even though eurozone finance ministers made no progress at a special summit Wednesday.
Credit Suisse’s technical team said gold remains in a medium-term bear trend with an eventual break below the November 2014 price low at $1,131.
Below here, further weakness would see 50% retracement of the entire 1999/2011 rise at $1087, then $1044/33, potentially looking further out to price and psychological support at $1006/00.
Elsewhere, China re-affirmed its determination to be a major influence on way the gold price is set by announcing plans to launch a fix in yuan by the end of the year.
Alongside India, China is one of the main consumers of gold with reported physical demand alone 974 tonnes in 2014, though the actual amount including central bank buying is believed to be much higher.
An hour into trading on Wall Street, spot gold was US$1 lower at US$1,173, flat at US$15.84 and platinum up US$1 at US$1,074.
