Today’s AM fix was USD 1,265.25, EUR 928.83 and GBP 754.52 per ounce.
Yesterday’s AM fix was USD 1,283.00, EUR 940.48 and GBP 762.87 per ounce.
Gold fell 2% yesterday to $1,264.76/oz. Silver fell 1.8% to $19.06/oz.
Gold broke below support at $1,284/oz yesterday and quickly fell to nearly $1,265/oz. Overnight, gold in Singapore fell to nearly $1,260/oz prior to a slight bounce back to $1,266/oz.
Better than expected U.S. economic data and slightly lower official Chinese demand were cited as reasons for the move lower but it appeared more computer and technical driven as the price falls came before the U.S. economic data and Chinese demand figures were released.
Technically, gold is vulnerable to a further fall to the double bottom between $1,180/oz and $1,200/oz.
The 14-day relative-strength index fell to 32.9 yesterday, the lowest since December, and near the level of 30 that suggests a potential rebound to technical analysts. Gold has rebounded 5.2% this year even after yesterday’s 2% price fall and remains one of the best performing assets so far in 2014.
The price weakness came despite continuing bullish developments for the gold market. Yesterday came news of China launching a new physical Global Gold Exchange and President Putin of Russia again affirmed how Russia values its gold reserves.
Russia and China need to ensure their gold and currency reserves are secure, Russia’s President Vladimir Putin told journalists at the St Petersburg International Economic Forum.
"For us (Russia and China) it is important to deposit those (gold and currency reserves) in a rational and secure way," he said. "And we together need to think of how to do that keeping in mind the uneasy situation in the global economy."
Putin also said China and Russia will consider further steps in order to use national currencies in bilateral transactions according to Reuters.
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