Gold price hits nearly 2-week low as economic data saps demand
U.S. gold inched down 0.2 percent to $1,667.30.
Though the 200-day moving average, at just below $1,663, provided some support for spot gold, technical analysis suggested that prices could test the lower level of $1,661, and possibly ease to the Jan. 4 low of $1,625.79 over the next four weeks.
The price slump has triggered some physical buying interest, but many buyers were holding the purse strings on the sidelines of the market, with hopes that prices would further decline.
"There aren't too many orders, because prices are not low enough," said a Singapore-based dealer, expecting a further drop to $1,635 level to be a bigger draw to buyers. Supportive of gold prices, Russia's central bank said it will continue to buy gold as it seeks to diversify its foreign reserves away from paper assets it views as risky.
Spot platinum inched up 0.2 percent to $1,680.99, on course for a 0.8-percent weekly gain, extending its winning streak to a fourth week, its longest in a year.
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