Gold futures continue to fall, adding to the heavy losses, the lowest price since March 2011 recorded on Monday, as investors continued to sell gold, market amid bearish chart signals.
On the Comex division of the New York Mercantile Exchange, Gold futures fall for June delivery traded at 1, $ 397.65 USD/Ounce during the European trading, down by 6.9% on the day.
Gold prices dropped in Comex by 7.7% earlier in the session to reach its lowest price for the day at $ 1, 385.25 USD / Ounce, the lowest price since March 18, 2011.
Gols was likely to find support at 1 , $ 380.70 USD/ Ounce, the lowest price since March 15, 2011 and resistance at $ 1, 447.60, USD/ ounce, the highest price since March 24, 2011
Gold losses accelerated sharply during the European morning trade after a price break below the key of support levels near $ 1, 425 USD/ Ounce – the level of $ 1 , 400 USD/Ounce, triggering a wave of automatic sell orders.
Analysts have warned the market of low gold less than the price of $ 1, 380 USD/Ounce, the text could open the door to further losses in the near term.
Precious metals prices fell by 27% since hitting an all-time high at $ 1, 920.80 USD/ ounce in September 2011.
Market sentiment fell
China’s economy grew by 7.7% this year in the first three month to March, down to 7.9% in the fourth quarter contrary to expectation by higher growth rate equal to 8.0% was expected.
Separate reports showed that China’s industrial output also came below expectations, while retail sales rose slightly more than expected.
The data reinforced fears about the outlook for global growth after data showed on Friday that U.S. retail sales fell 0.4% in March, the biggest decline in nine months.
Tracks movements in the price of gold this year largely transform expectations about whether the U.S. central bank can implement more quantitative policy, and one of the biggest aspects of support for the operation of gold, to the end of this year.
Affected News, News that Cyprus will sell “excessive amounts of gold” to raise owned an estimated 400 million euros in order to deal on sentiment, as it had done to reduce prices investment firm Goldman Sachs Wall Street.