Gold Steadies Above $1,250, but Trading Thin

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.

Click here to view the report. 

Get the Latest Gold Investing Stock Information

Get the latest information about companies associated with Gold Investing delivered directly to your inbox.

Gold Bullion
Gold Mine Development
Gold Production/Mining
Gold Project Generators
Gold Prospecting and Exploration
Gold Resource Definition/Pre Feasibility
Gold Resource Expansion/Feasibility Study/PEA

By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time.

Otis-Gold-LogoOtis Gold Corp. (TSXV:OOO) is a near-term producer with an NI 43-101 resource 520,000 ounces of drill-indicated gold at its Kilgore Project in Idaho. Work is scheduled to begin soon at the North Target area of the Kilgore Gold Project. Connect with Otis Gold Corp and never miss a catalyst.

Leave a Reply