Reuters reported that gold has inched above $1,250 per ounce in thin volumes. The yellow metal remains vulnerable to losses as a rally in stocks and strong dollar after last week’s US Job data sent investors away from gold.
According to the publication:
Spot gold edged up 0.1 percent to $1,253.80 an ounce by 1437 GMT. It fell to a four-month low of $1,240.61 early last week, before stabilising.
U.S. gold futures for August delivery gained $1.30 an ounce to $1,253.70.
VTB Capital analyst Andrey Kryuchenkov said:
Gold is struggling with the upside but it’s not really correcting lower either, even as the dollar strengthened in reaction to the ECB rate cut and U.S. data, which instead suggests that the Fed will continue to reduce QE3. Technically, $1,240 is a strong support level, while on the upside $1,265 could prove a resistance level.