Thursday, January 21, 2016

Bullion Tips : Gold dropped down 21 Jan, 2016

Bullion Tips : Today, Gold dropped down early in Asia, slipping from a 1-1/2-week high, as battered stocks bounced back along with US crude.

Important Points :

Spot gold was off 0.2 per-cent at USD 1,099.40 an ounce by 0039 GMT, after touching USD 1,109.20 on yesterday, its highest since January 8.

US gold for Feb delivery slided 0.6 per-cent to USD 1,099.60 an ounce.

Bullion has benefited from the risk-averse sentiment that has dragged equities and oil to multi-year lows & pushed investors towards assets deemed as secure havens.

Still, the metal has found resistance around USD 1,100 as the threat of further US interest rate increases and a stronger US dollar suggest limited upside potential.

But hopes of another US interest rate increase in March diminished after consumer prices unexpectedly fell in Dec as the cost of energy products and food declined, offering signs of weak inflation.