Gold stays below US$1,200 as US jobs boost dollar

Investors fear the strength in the economy could draw the Federal Reserve closer to raising interest rates and decrease demand for gold, a non-interest-bearing asset.

"We suspect that gold will likely be at its most vulnerable over next three to six months, which is when we see the highest likelihood of a rate hike that should sweep the dollar higher," INTL FCStone analyst Edward Meir said.

"In addition, the recent rout in energy prices will lower inflationary expectations and increase real interest rates, yet another reason that we would be cautious about gold's upside potential."

For now, some market players say gold could hold near US$1,190 levels on recent data on investor positioning.

"There looks to be some underlying strength in the market however, as the yellow metal convincingly held US$1,180 on Friday, following the non-farm payroll print," said Sam Laughlin, metals dealer at MKS Group.

Immediate support will come in around US$1,186, while on the topside US$1,210-US$1,220 will provide resistance, he said.

Well this thread getting interesting by the day. Good to read all the opinion & comments

Gold set for biggest weekly rise in 6 months as stocks, dollar slip

Gold is up 3 percent so far this week. Weakness in stocks has prompted some investors to buy the metal as an alternative asset, while a drop in the U.S. unit made dollar-priced bullion cheaper for other currency holders.

"Gold and silver have both had a very good week, going against the trend seen elsewhere," Saxo Bank's head of commodity research Ole Hansen said. "We have reached levels which short sellers have been attracted to in the past and this may slow the positive momentum that has emerged during the past week."

"Overall there is a feeling out there that traders are now going defensive on their positions and this is weakening the dollar, thereby adding some support to precious metals."

"The longer gold holds above $1,200, the more it may attract fresh buying and gold ETFs may begin to build," HSBC analysts said in a note.

Gold rose for a second straight session on Monday as buying from top consumer China picked up ahead of the Lunar new Year and European shares fell, but the metal remained vulnerable to losses due to a strong dollar.

Demand from buyers in China was reflected in higher premiums to London gold prices. Prices on the Shanghai Gold Exchange were about $7 an ounce higher than the global benchmark. Premiums were about $4-$5 last week.

"This is the time of the year when people start taking long-term strategic positions and I wouldn’t be surprised to see a bit of price strength in the year ahead, less so in dollar terms, as I suspect we will see more dollar strength in the year ahead," Sharps Pixley CEO Ross Norman said.

"There is some buying in China, India and those countries where there are sharply weakening currencies."

Gold hit three-week highs on Tuesday as sliding oil prices knocked stock markets and concerns simmered over Greece's future in the euro zone, prompting investors to seek out bullion as a safe store of value.

"There are some factors that are playing in gold's favour right now," Julius Baer analyst Carsten Menke said. "We've had these issues in Greece again, and talk about Grexit. In 2011, when the euro crisis struck, this was of course a big driver of the gold market, so some people are moving back into gold because of this."

Premiums on the Shanghai Gold Exchange were $5-$6 an ounce over the global benchmark on Tuesday, seen by dealers as a sign of good demand in top consumer China.

Buying in China has increased in recent weeks ahead of the Lunar New Year holiday, when gold is bought for gifts, and demand is likely to stay strong until the holiday in February.

Gold eased on Wednesday after a three-day winning streak as the dollar and equities strengthened, but prices held above $1,200 an ounce and near their highest in three weeks on worries about Greece's political situation.

Gold's near-term resistance for the closing price is expected at $1,220, while a close above that level would shift the focus to further gains, with a target of $1,250, technical analysts at ScotiaMocatta said.

Poh Kong mulls selling gold for investment
http://www.thestar.com.my/Business/Busines...MENT/?style=biz

Gold extended gains to the highest in almost 12 weeks as investors assessed the timing of higher borrowing costs and the strength of the U.S. economy amid slumping oil prices.

“The longer-term direction for gold will still come from the outlook for U.S. interest rates,” said Zou Lihu, an analyst at Citics Futures Co. in Shenzhen. “The short-term direction of gold is being driven by the dollar, oil and general risk sentiment in the market.”

“It just seems that people are looking at precious metals as a comparatively cheap investment at the beginning of the year,” David Govett, head of precious metals at broker Marex Spectron Group in London, said in a note today. Some investors may sell the metal if it climbs to $1,250, he said.

UBS lower 2015 gold price forecast, others also revised downward
http://www.bulliondesk.com/gold-news/focus...downward-88279/

http://www.investing.com/news/commodities-...-19---23-323983

other than oil price, weaker MYR against USD also contribute higher gold price (in malaysia )

Okay, maybe I'm wrong about oil price, But I'm very sure weaker MYR against USD contribute to higher gold price in malaysia

okay. fine... what u say is all correct..

please don't start another "war" here.. the previous one lasted few pages

veli good decision

whatever

Gold extends losses to third day on stronger equities
http://in.reuters.com/article/2015/01/27/m...N0L002O20150127

Will gold ever top $1,300 again?
http://www.cnbc.com/id/102378782

Is This Gold And Silver Rally For Real? Here's What To Watch
http://www.forbes.com/sites/jessecolombo/2...-what-to-watch/

Gold holds near $1,280 amid shaky global outlook
http://www.cnbc.com/id/102387501

when the return is veli high, people lose their sense & thinking, & start thinking to invest with the scheme by any means (take loans, Along etc.)