LONDON — Gold fell 2% to a two-week low on Friday, on track for its biggest one-day drop since mid-April, as a breach of key chart levels prompted heavy selling of US futures, already under pressure from a stronger dollar and rising stocks markets.
Reuters
Traders said sell stops were triggered as the metal broke support at US$1 445 and US$1 440 an ounce, prompting a sharp move down to session lows at US$1 428,40 an ounce.
Spot gold was down 1,7% at US$1 431,91 an ounce while US gold futures for June delivery were down 2,6% at US$1,430.
“We were sitting in a fairly tight US$1 440 to US$1 480 range, which was finally breached to the downside,” VTB Capital analyst Andrey Kryuchenkov said. “Orders were triggered below US$1 440.”
“The US dollar index is at late April highs, back above 83,” he added. “That is one of the few things driving it, given still small volumes and little in the way of fundamental developments.”
The dollar hit a 4-1/2 year high against the yen on Friday and European shares hit five-year highs after US jobs data beat forecasts on Thursday and on signs Japanese investors have begun buying foreign bonds.
Oil prices fell, with Brent crude down 1,6% and US crude down 2%. Rising optimism over the US recovery has also boosted the appeal of assets like stocks at gold’s expense, and has called into question the scope of the Federal Reserve’s quantitative easing programme, a major support to bullion in recent years.
- Hebrew Scriptures: The best way to stop suicide
- Mpofu plots DeMbare downfall
- Bosso bullish ahead of BF blockbuster
- Innscor volumes rise
