Gold hits 7-month low on worries on fate of Fed's stimulus
percent to $1,554.49, its lowest since July. It had since pared some losses to $1,560.66 by 0252 GMT. It fell 2.6 percent on Wednesday, posting the biggest daily drop in a year.
U.S. gold fell to a more than seven-month low of $1,554.3 earlier in the day, and recovered to $1,560.40.
Technical analysis suggested spot gold could extend losses to $1,538-$1,548 an ounce during the day, as indicated by its wave pattern, said Wang Tao, Reuters market analyst.
Tumbling prices attracted buying interest in the physical market, but it was not enough to offset selling from speculators.
"There is a lot of physical buying in the region," said Brian Lan, Managing Director at GoldSilver Central Pte Ltd in Singapore, adding that in the longer run gold still remains attractive.
"As long as the problems in U.S. and European economies are not fully resolved and interest rates remain low, the macroeconomic environment should still be good for gold."
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, slumped 1.57 percent from the previous session to 1,299.164 tonnes on Feb 20, the lowest in more than five months.
Spot silver fell 0.2 percent to $28.47 an ounce, having fallen to a six-month low of $28.26 in the previous session.
Anglo American Platinum (Amplats) said persistent labour unrest was jeopardising investment in South Africa and warned that talks with government and unions may not lead to a reduction in its planned job cuts.
Spot platinum extended losses to the
Be the first to comment.
