Gold slips as investors await central bank decisions

A salesman arranges a gold necklace inside a gold jewellery showroom in the southern Indian city of Kochi April 16, 2012. Indian gold futures are likely to extend losses this week, falling below a one-week low touched on Monday, hurt by a firm dollar overseas, although a revival in physical demand ahead of key festival could limit the downside, analysts said. REUTERS/Sivaram V (INDIA - Tags: BUSINESS COMMODITIES) - RTR30T4Q Asian shares rose as worries over the impact of Britain's Brexit vote eased amid efforts to maintain growth

Gold extended losses on Monday from the previous session as Asian stocks were at near nine-month highs on increasing risk appetite and ahead of central bank meetings in the United States and Japan this week.

Asian shares rose on Monday as worries over the impact of Britain's Brexit vote eased amid efforts to maintain growth, while the dollar was buoyed by a run of solid US economic data.

Spot gold fell 0.4 per cent at $1,317.04 an ounce at 0352 GMT. Bullion fell 0.7 per cent on Friday, declining for a second successive week. US gold was down 0.5 per cent at $1,316.80 an ounce.

"We could see some falling of gold prices with markets thinking things are not as bad as expected post-Brexit and the good performance of key US economic indicators," said Jiang Shu, chief analyst at Shandong Gold Group.

The Bank of Japan and the US Federal Reserve will likely come up with some fairly positive comment on the economic performance, along with other central banks, to cool down the pessimistic emotions of global financial market, Shu said.

Central banks from Washington to Tokyo take centre stage this week, although policymakers are likely to remain cautious as they wait for the dust to settle from Britain's shock vote to leave the EU.

Spot gold may break support at $1,313 per ounce and fall to the next support $1,298, as its bounce from a July 21 low of $1,310.56 may have ended, Reuters technical analyst Wang Tao said.

"We see tentative trade this week within the precious complex with both the BOJ and Fed meeting," MKS Group trader Sam Laughlin said in a note.

"Price action will likely be skewed to the downside and we expect to test the post-Brexit low around $1,305 and below this $1,300 should global equities continue their upward trajectory."

Hedge funds and money managers continued to pile on bullish silver bets in the week to July, data showed on Friday.

Among other precious metals, silver, which fell about 3 per cent last week, was down 0.7 per cent to $19.46.

Palladium, which touched a fresh near-nine month high on Friday, was down one percent to $673.50. It registered its fifth weekly gain last week, after rising 5 per cent for the week.

Platinum was down 0.7 per cent $1,069.05 an ounce.

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Topics : #Gold | #business

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