Gold on the level of $ 1.580 an ounce on Friday, where investors attach hopes to get more of the financial facilitation of the U.S. central bank after weak data during the previous meeting, but it is unlikely to bring the dollar rebound gains.
Early this week, the head of the Fed the American “Ben Bernanke” that the bank is ready to carry out steps in the event of worsened economic conditions, but gave few hints about another round of quantitative easing, which will be supported by inflation expectations and the attractiveness of gold bullion.
Recent data showed the contraction activities factories in the mid-Atlantic region in the United States during the month of July for the third month in a row and increased new demands for unemployment last week.
Gold is confined in a range between $ 1.530 and $ 1.630 for about two months, while investors are looking for clear signals from the Fed and watching the suffering of the euro area with the debt crisis for the third year in a row.
“The Yoshi Akemezo”, President of the circulation of commodities in the “Standard Bank” in Japan “is shrinking these days I do not see a lot of encouragement from the people to take a large position.”
The value of gold was fixed at $ 1,581.25 an ounce at 06:27 GMT, and on course for a weekly loss of about 0.5%. While 0.5% of contracts made during the previous meeting. U.S. gold futures for August orders are also handled a little change at $ 1.581.20.
Credit contracts SPDR Gold, which is the largest gold-backed fund is traded on the stock exchange in the world, fell to 1,257.054 metric tons (1385.7 tonnes) by July 19, which refers to the fading interest of investors in gold.
Technical signals are weak, and painted a bleak picture for gold in the near term.
“It seems that gold has lost its luster,” said Tim Riddle, head of ANZ for Research on global markets, “The daily activity flat or neutral and sits in the lower extremity of the range from 1.555 to 1.635 $. Inability during the short term to re-gain levels above $ 1.600 will keep orientation towards the re-test the basis of this range “.
Riedel said that despite the strong support which was built in the region between $ 1.522 – $ 1.525, that level may come under pressure too soon.