Gold up from seven-week low
Duncan Richardson, News Editor
2 Apr 2014, 10:56 a.m.
Following two days of losses, gold has steadied but remains close to a seven-week low, as better than expected U.S. factory data reduced gold’s appeal as a hedge against a faulting U.S. economy.
Gold fell yesterday following the news that auto sales picked up in the U.S. and factory output accelerated for the second consecutive month. Investor sentiment is mixed, many are suggesting the political tensions in the Ukraine could support the gold price and others believing rising equities could cause gold to head lower.
On a technical basis the gold charts look negative, but gold analyst Ed Meir is more confident, "Short-term, the gold charts look negative, but we should note that prices are now approaching over-sold territory. We see prices trading between $1,250-$1,330 over the course of April."
In China, premiums have risen above the London spot price for the first time since March indicating demand from China is picking up.
Holdings in the world’s largest Gold ETF, the SPDR Gold Trust, fell 2.10 tonnes yesterday to 810.98 tonnes, the lowest level since the beginning of March.