(Reuters) – Gold price almost steadied on last trading session of March 2014 around the $1,300 per ounce mark, near a 6-weeks low recorded on mid March. The yellow metal officially made its first monthly decline in 2014.
Gold price in the spot market was lasted quoted down by nearly $1.80 at $1,293.30 while June gold futures were down $0.50 to be traded at $1,293.90 per ounce. Investors are likely to wait for U.S. economic data due to be released this week for clues on gold market direction.
For the last 10 sessions, gold price lost nearly $100 of value, dropping from a 6-month high hit by mid March to a 6-week low mark at $1,285.34 per ounce. Federal Reverse Chairwoman, Janet Yellen, implication of interest rates rising by the first half of 2015 and the situation of Crimea played a major role in gold price movement this month.
Unexpectedly strong U.S. economic data released in late March provided ground for the Federal Reserve hawkish comments about tapering Quantitative Easiness program by another $10 billion a month. Moreover, a new cold war possibility seems less likely between Russia and Western powers. Although President Vladimir Putin annexed Crimea, his statements were interpreted as dovish by the market, removing doubts and much tension in the region.
Gold price movement almost steadied around $1,300 per ounce level, with gold bears having technical advantage. For gold price to be seen as bullish, it has to close a trading session above $1,320 mark thus gaining some of the lost ground this month. While bearish market is expected if prices closed below $1,250 per ounce.
As a new development, physical demand in Asia has slowed down for the past two weeks. However, Japan recorded pick-up in demand on gold as tax hike starting April 1 have been announced.