Spot gold edged lower on Thursday

Spot gold edged lower on Thursday, tracking losses in riskier assets, as the markets remain jittery over the euro zone debt crisis while the bloc’s political wrangling continues.

France and Germany clashed over whether the European Central Bank should intervene more forcefully to halt the euro zone’s accelerating crisis, while the bond market turmoil is spreading across Europe, making investors grow increasingly nervous.

Gold has been tracking equities and other commodities in recent months, as investors are forced to sell their profitable gold positions to cover losses elsewhere during such economic and political turbulence.

Investors favored the traditional safe haven of the dollar, pushing the greenback up nearly half a percent against a basket of currencies, while the euro wallowed at five-week lows versus the dollar and yen. <USD/>

“The U.S. dollar is strong and there does not seem to be a good solution for Europe,” said a Hong Kong-based dealer. “The technical picture looks weak and gold is probably not going to break above $1,800 soon.”

Technical analysis suggested spot gold could fall into the range of $1,728 and $1,735.69 during the day, said Reuters market analyst Wang Tao.

Spot gold lost 0.2 percent to $1,758.99 an ounce by 0217 GMT, off a one-week low of $1,753.39 hit on Wednesday.

U.S. gold fell 0.8 percent to $1,760.60.

Although spot gold prices declined 1.5 percent so far this week, holdings of SPDR Gold Trust gained 8.69 tonnes, on course for a fourth week of consecutive rise.

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Posted by admin on Nov 17 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry