U.S. gold futures ended lower yesterday after a three-session winning streak, as investors locked in profits after the price of bullion recently rallied based on safe-haven buying amid economic worries and strong investment demand. Weak oil prices also adversely affected the precious metals movements. Oil price dropped more than $4 to below $42 per barrel, triggered profit taking in gold futures.
At the same time dollar fell against the euro yesterdays after data showed prices of U.S. single-family homes dropped by a record 18.2 percent in November from a year earlier.
According to the data, The Standard & Poor's/Case-Shiller index of home prices in 20 cities was down 18.2% in November from a year ago, roughly as expected.
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But on Monday gold rose above $900 an ounce to the highest level in more than three months as interest in bullion as a haven from risk and a weaker dollar against the euro supported buying. Fresh investment demand in light of weak world economy also supported the precious metals movements.
International spot gold traded in the range $ 906.90- $ 891.50 a Troy Ounce and last quoted at $897.30
Weekly Outlook (DG. OCT.)
Gold prices if sustain above 905 is bullish. Resistances are $918, $833, $952 and 988. Supports are at $892, $875, $861.
Last day DGCX Gold FEB. Traded in the range $909.30-$894.80and closed at $ 899.80
