The physical price of gold as at 5pm stood at RM126.86 per gramme, down RM1.74 from RM128.60 at 5pm yesterday - Bernama

Gold drops, still set for biggest weekly rise in 3 months

Gold fell one percent on Friday as investors took profits after it posted its biggest daily rise in nine months, but was still set for the biggest weekly rise in three months on Iraq tensions and a softer dollar after the Federal Reserve's comments.

"Yesterday's $50/oz move higher was mainly due to higher inflation expectations in the U.S. and the fact that the Fed was not able to cool them," ABN Amro analyst Georgette Boele said.

"That was coupled with oil moving higher on the back of tensions in Iraq," she added. "As prices moved very quickly higher yesterday we had stop losses triggered and short-term traders taking profits."

"At this point, gold appears overdone," UBS strategist Edel Tully said. "Strategic buyers are remaining on the sidelines; this is a move that is currently dominated by short-term traders."

Gold's buying also rose on the conflict in Iraq, which lifted crude oil prices to nine-month highs earlier in the week.

"Demand was slightly better when prices had steadied around $1,270 but with this move above $1,300, we have seen a pull back," said a trader in Hong Kong.

The physical price of gold as at 5pm stood at RM131.89 per gramme, up 63 sen from RM131.26 at 5pm last Friday - Bernama

The physical price of gold as at 5pm stood at RM131.06 per gramme, down eight sen from RM131.14 at 5pm last Friday - Bernama

Gold slips ahead of U.S. jobs data, ECB

Gold slipped on Thursday as the dollar and equity markets strengthened, while investors awaited a European Central Bank meeting and U.S. jobs data to gauge the strength of the global economy and the fate of stimulus measures by central banks.

"The dollar gained some strength on the back of yesterday's data, which is not supportive for gold but unless there is a significant surprise in the U.S. nonfarm payrolls, we don't see gold collapsing," Natixis analyst Bernard Dahdah said.

"Prices should come under pressure below $1,300 in the longer term, as the U.S. economy gets gradually better and investors find fewer reasons to put their money into safe assets like gold."

"Given the factors currently lined up against gold - positioning, weak physical markets, and potentially strong employment - any sign of resilience in the face of stronger data will be an important signal that investors may be becoming friendlier to gold," UBS said in a note.

Meanwhile, physical demand for gold has been lacklustre due to the recent rally in prices. In top buyer China, domestic prices were at a discount of $1-$2 an ounce to global prices, underscoring sluggish demand.

Gold slips as dollar firms on strong US data, rate hike talk

Gold fell on Monday as the dollar firmed on speculation over an earlier-than-expected hike in U.S. interest rates following strong job data, which dented investment demand for the metal.

Gold has been under pressure since data on Thursday showed U.S. employment growth jumped in June and that the jobless rate closed in on a six-year low, evidence of brisk economic growth.

The data led investors to bring forward their views on timing of the first rate hike by the U.S. Federal Reserve to the middle of 2015, although most economists said that more data was needed.

An interest rate hike would encourage investors to withdraw money from non-interest-bearing assets such as gold.

Gold prices are expected to retest a support level at $1,311, with a good chance of breaking below this and falling to $1,297, Reuters technicals analyst Wang Tao said.

Physical demand showed some sign of improvement after remaining subdued for months, while selling of recycled gold increased as prices moved above $1,300 an ounce, traders said.

Gold steadies near 3-1/2-month high, set for 6th weekly gain

Gold steadied near 3-1/2-month highs on Friday as stock markets recovered from the selloff seen in the previous session on concerns over the health of Portugal's biggest bank, with the metal still on track for a sixth week of gains.

Concerns over the financial stability of the euro zone have driven gold prices sharply higher in previous years, as investors bought the metal as a safe store of value.

"Geopolitical uncertainty and concerns of any potential contagion into Portugal's wider banking sector and indeed the euro zone's wider banking sector were clearly supporting gold yesterday," Mitsubishi analyst Jonathan Butler said.

"The longer-term trend since early June shows that there is still underlying strength in gold."

In the physical markets, India caused a surprise on Thursday by keeping the import duty on gold and silver unchanged at 10 percent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer and further encourage smuggling.

Physical demand in other Asian countries was also weak due to the recent jump in prices. In No. 1 buyer China, local prices have been on par with the global benchmark or at a discount, underscoring sluggish demand.

Gold slides from 3-1/2 month high as stocks climb

Gold prices slid more than 1 percent on Monday as a rally in stock markets prompted investors to cash in gains after last week's rise to 3-1/2 month highs and as concerns over the euro zone periphery faded.

"There has been some profit-taking this morning," Andrey Kryuchenkov, an analyst at VTB Capital, said. "The market overshot to the upside after the Fed minutes last week, the dollar generally held well and we are still not seeing substantial physical flows."

Investors were also eyeing physical buying in Asia, which has been subdued due to the recent price gains.

"There isn't much demand from India, China or anywhere in Southeast Asia for the last few weeks," a dealer in Singapore said. "Unless prices drop sharply in a short period of time, I don't think we can expect any price support from the physical markets."

"The Indian budget didn't mention anything about gold," Natixis analyst Bernard Dahdah said. "There was a lot of anticipation (that it would loosen) duties and the 80:20 ratio of imports to exports. If it had done that, it would have lifted the price of gold, but this didn't happen. There's a bit of disappointment over that."

Gold below $1,300 on stronger dollar, interest rate fears

Gold steadied below $1,300 an ounce after two days of losses on Wednesday, still trading near a four-week low on a stronger dollar and fears the Federal Reserve could hike U.S. interest rates sooner than expected.

"Yellen's remarks this week are triggering an upward adjustment in expectations for the future path of Fed rate hikes, a higher U.S. dollar, constructive investor sentiment and lower gold prices," ABN Amro analyst Georgette Beoele said.

"At best, we'll see prices consolidating at these levels but if more good economic data comes in or the market gets more nervous about expectations for higher interest rates, we'll see further downside."

"Despite Yellen defending the Fed's stance to maintain loose monetary policies, the bullion markets seemed to interpret her comments for the possibility of an earlier than an anticipated rate hike as gold-bearish," HSBC analysts said in a note.

"With the break below $1,300/oz and technical weakness, further losses for gold are likely."

Traders said gold could have further to fall, especially as this week's $40 drop has failed to generate a robust pickup in physical demand in Asia.

"I don't see any new positions created at this level or any fresh buying in the physical markets," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

"Prices will see some range-trading now and could consolidate at $1,280-90."

Gold dipping but downed plane seen aiding sentiment
http://www.thestar.com.my/Business/Busines...ding-sentiment/

Gold rises on Gaza, Ukraine turmoil
http://www.investing.com/news/commodities-...-turmoil-296441

Gold retreats as firmer dollar offsets Russia concerns

Gold edged lower on Thursday after rising more than 1 percent the previous day as a firmer dollar offset concerns that tensions between Russia and the West over Ukraine could escalate.

"There are a lot of crosswinds going on for gold," Deutsche Bank's global head of commodity research, Michael Lewis, said. "You have long-term U.S. real yields going down to new lows and geopolitics, which should be supportive, but on the flip side you have dollar strength coming through and equities hitting new highs."

In the physical markets, buying slowed on Thursday after prices rose above $1,300 an ounce. Premiums in top buyer China dropped to about $1 an ounce from $2-$3 in the previous session.

Demand had already been sluggish due to the seasonally quiet summer period and on expectations of a further drop in prices.

Investor sentiment in bullion still seemed fragile on persistent worries over possible tightening of monetary policy in the United States.

Gold - Looking Back Down At The Key $1290 Level

To finish out last week gold exhibited signs of a rejection pattern with its last red candlestick showing a probability to head back down again. In the middle of last week it moved well away from the support level at $1290 and back up well above $1300 to a two week high above $1310 before easing lower. Over the last week or so gold had been easing lower and placing pressure on the support level at $1300 which eventually gave way resulting in gold falling sharply back down to a six week low near $1280. Over the last few weeks the $1290 level has shown some signs of support and held gold up and this level has been called upon again in the last week to prop gold up. During the second half of June, gold steadily moved higher but showed numerous incidents of indecision with its multiple doji candlestick patterns on the daily chart. This happened around $1320 and $1330.

The OANDA long position ratio has moved back down below 60% again as gold has settled around $1300 for a little while. At the beginning of June, gold did very well to repair some damage and return to the key $1275 level, then it has continued the momentum pushing a higher to its recent four month high. After moving so little for an extended period, gold dropped sharply back in May from above the well established support level at $1275 as it completely shattered this level falling to a four month low around $1240. It remained around support at $1240 for several days before its strong rally higher. It pushed down towards $1280 before sling shotting back and also had an excursion above $1300 for a short period before moving quickly back to the $1293 area again. Over the last few weeks gold has eased back from around $1315 to establish its recent narrow trading range below $1295 before its recent slump.

Way back since March, the $1275 level has established itself as a level of support and on several occasions has propped up the price of gold after reasonable falls. Throughout the second half of March gold fell heavily from resistance around $1400 back down to a several week low near support at $1275. Both these levels remain relevant as $1275 continues to offer support and the $1400 level is likely to play a role again should gold move up higher. Through the first couple of months of this year, gold moved very well from a longer term support level around $1200 up towards a six month higher near $1400 before returning to its present trading levels closer to $1300.

Gold rejected a 3-1/2 week high on Friday, settling lower fort the session, but in managed to log a weekly gain of more than 1 percent for the week as the dollar fell and equities rallied after reports of reduced tensions in the Russian-Ukraine situation. Earlier, President Barack Obama said he had authorized targeted strikes to protect the besieged Yazidi minority and U.S. personnel in Iraq, after the Iraqi government requested help. U.S. gold futures for December delivery lost $1.60 to settle at $1,309 an ounce, but it gained 1.2 percent for the week, its first increase in four weeks. Spot gold hit its highest since July 14 at $1,322.60 an ounce earlier, but reversed as Wall Street indexes turned higher. It was last down 0.2 percent at $1,310 an ounce after news broke that U.S. military hard launched another round of airstrikes against an Islamic State target in Iraq, according to American officials.

Gold firms as Ukraine jitters, soft data hurt stocks
http://www.reuters.com/article/2014/08/12/...N0QI2R320140812

Gold holds above $1,300 as Ukraine worries stoke safe-haven demand
http://in.reuters.com/article/2014/08/13/m...N0QJ1BB20140813

Gold cuts losses on Ukraine tensions; holds near $1,300
http://in.reuters.com/article/2014/08/18/m...N0QO1CY20140818

Gold Little Changed as Palladium Is Near 13-Year High

“With geopolitical headwinds not escalating, with the dollar looking strong and with physical buying lacking, we feel that gold will face strong headwinds in sustaining gains in the near term,” Abhishek Chinchalkar, an analyst at Mumbai-based AnandRathi Commodities Ltd., said in a report today. “Later this week, the focus will turn towards the release of the FOMC minutes and Fed Chair Yellen’s testimony.”

Gold struggles below US$1,300 on strong US data, higher stock

Gold was stuck firmly below US$1,300 an ounce on Wednesday after a three-day losing streak, as strong US housing data bolstered stock markets and dimmed bullion's appeal as a safe haven.

"Robust housing reports out of the US were important, as the stronger numbers should dispel concern that the sector is starting to slow, as was the conventional view for the past few weeks," said INTL FCStone analyst Edward Meir.

The data may leave the room open for an uptick in rates and strong dollar, both of which should be bearish for gold over the short term, Meir said.

Gold drops to 2-month low as dollar gets boost from hawkish Fed

"Gold had already been under pressure from the dollar. Once it broke below the 200-day moving average near $1,284, there was heavy selling," said one precious metals trader.

Safe-haven gold failed to gain support despite a dip in Asian shares that came under pressure as a disappointing Chinese
manufacturing survey stoked concern about the regional giant.

Investors fear that strong data could prompt the Fed to increase rates soon. Higher interest rates would dull the appeal
of non-interest-bearing assets such as gold.

I'm not sure