Gold slumped to a six-week low on, Tuesday, May 1, as the dollar firmed up ahead of a U.S. Federal Reserve policy meeting that is being watched for clues on the future pace of interest rate hikes.
The metal also looks vulnerable after breaking through key chart support in the $1,320/1,317 area, its 100-day moving average and a key retracement of its January to March decline, technical analysts said.
Spot gold was down 0.5 percent at $1,307.95 an ounce at 1145 GMT, off an earlier low of $1,307.40, its weakest since March 20. U.S. gold futures for June delivery were 0.8percent lower at $1,308.60.
Gold now looks vulnerable to further losses after breaking through key support levels, according to technical analysts, who study past price patterns to predict the direction of trade, Reuters reports.
“MACD (moving average convergence-divergence) and momentum indicators highlight downside risk and I remain bearish on gold, targeting 1,304.30, the 200-day moving average,” ScotiaMocatta said in a note.
Silver was down 0.4 percent at $16.26 an ounce, while palladium was 1.1 percent lower at $954.47 an ounce.
Platinum was down 0.4 percent at $899.80 an ounce. The white metal used in autocatalysts and jewelery dipped earlier in the session to $892.10, its lowest since Dec. 18.
It was the biggest faller among major precious metals last month, sliding 2.7 percent in a third straight monthly loss.
