Gold's break below key support levels, including the 100- and 50-day moving averages, signals a further downside to prices, analysts say
Gold bars are displayed at Degussa shop in Singapore. Picture: REUTERS
Spot gold was broadly steady at $1,276.31 per ounce by 11.29am GMT, having fallen as much as 1.2% to $1,272.70, its lowest since December 27, on Tuesday."Investors are betting on the recovery of markets and that's mostly what's pulling gold down. The main market driver is moving from central banks to what is happening in the stock markets," said Carlo Alberto de Casa, chief analyst with ActivTrades.
World stocks inched higher after a raft of Chinese data signalled Beijing's recent stimulus drive might be paying off.On the technical front, gold's break below key support levels, including the 100- and 50-day moving averages, signalled a further downside to prices, analysts and traders said. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to a near six-month low of 752.27 tonnes on Tuesday. Holdings are down 4.5% so far in 2019.
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