Precious Gold, on Wednesday, August 2, edged lower the dollar firmed and as investors took profits after downbeat U.S. data propelled prices to a seven-week high in the previous session.
Spot gold had fallen 0.2 percent to $1,265.80 per ounce at 0638 GMT. The day before, it hit its highest since June 14 at $1,273.97.
U.S. gold futures for December delivery declined 0.6 percent to $1,272.30 per ounce.
A gauge of U.S. factory activity slid from a near three-year high in July amid a slowdown in new orders, and consumer spending barely rose in the prior month, setting the stage for a moderate economic expansion in the third quarter.
The largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust, , saw holdings decrease by over 7 percent in the month of July, the biggest monthly
outflow since April 2013. The fund has seen outflows of over 24 tonnes since July 21.
The dollar clung to modest gains on Wednesday after bouncing from 15-month lows, benefiting from a pause in selling of the battered currency as investors begin positioning for key events this week, notably Friday’s U.S. employment report.
Spot gold may break support at $1,264 per ounce and fall to the next support level at $1,258, as suggested by its wave pattern and a Fibonacci retracement analysis, according to
Reuters technical analyst Wang Tao.
Platinum edged down 0.1 percent to $942.90 per ounce, after rising to its highest in seven weeks earlier in the day. Palladium drifted 0.3 percent lower to $889.60 per ounce. In the previous session, it marked its highest since June
