Thursday, January 2nd 11:56 AM IST
Gold rebounds from low, bearish trend prevails
# gold # FOMC # precious metals # Fed tapering
Gold halted a 12-year bull run as assets in bullion-backed exchange-traded products shrank for the first year since the first product was introduced in 2003.
LONDON (Bullion Street): Gold continues to remain bearish despite the rebound seen in new year as a six month decline spurred physical buying, according to market reports.
US Gold futures for February delivery rose $23 per ounce to $1225.3 per ounce in electronic trading on Thursday. "On daily charts the rebound in prices can take gold to $1260 levels where it could face resistance. MACD remains negative while RSI of 48.81 is in neutral territory," according to Sreekumar Raghavan, Chief Strategist at Commodity Online Group.
Gold prices slumped 28% in 2013, the worst annual loss since 1981.
Gold halted a 12-year bull run as assets in bullion-backed exchange-traded products shrank for the first year since the first product was introduced in 2003. U.S. data on Dec. 31 showed consumer sentiment and home prices climbed, underscoring the confidence expressed by the Federal Reserve when it said it will slow bond purchases this month amid an improving economy.
Gold prices had turned weaker in the last week of December as Federal Reserve announced the beginning of tapering by $10 bn per month. Fed officials said on Dec. 18 that they will trim the bank’s monthly bond purchases to $75 billion from $85 billion. The central bank will probably reduce the purchases in $10 billionincrements over the next seven meetings before ending the program in December 2014.
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