(MENAFN- ProactiveInvestors - UK) Gold is firmly in down mode and seems unable to shake off its current torpor.
After heavy falls yesterday, when spot gold dropped more than US$20 per ounce, the metal was down another US$8 today as expectations of US interest rate hikes rose further. Decent US housing data as well led to a sharply appreciating US dollar and higher yields on ten-year US Treasuries, both of which unsettled gold. The probability of a Brexit has also decreased according to the latest poll while further financial aid for Greece has saved its bacon, for a few more months anyway. An outflow from gold-backed exchange traded funds added to the selling pressure. 'In our opinion, the dynamism of the downswing and the proximity of the price to the psychologically important $1,200 per troy ounce mark make it probable that this level will soon be put to the test,' said German broker Commerzbank. It added, though, that below this level would likely to be viewed as an attractive opportunity to buy. Macquarie, meanwhile, estimates that Chinese gold imports were 75t in April, based on Chinese Customs' valuation data, or down from 108t in March and an 85t average in the first quarter. 'Although this might be seen as another data point to suggest gold physical demand is very weak, it is not out of line with the usual relationship between the gold price and Chinese import volumes,' said the Aussie broker. A couple of hours into US trading spot gold was trading at US$1,218, down US$8, silver was flat at US$16.28 while platinum eased US$7 to US$988.
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