The prices of gold fell on Thursday to almost a week’s low, as the dollar rose from a three-year low after release of US economic data turned out to be better than expected.
Gold fell by 0.1%, trading at $1.326 an ounce, its worst one-day decline since Dec. 7. US gold futures fell by 0.9%, hitting the price of $1.326 an ounce.
Gold looks well supported at $1.325 per ounce, and we can expect a lot of buying interest at the $1.300 barrier. Analysts claim that the first resistance level over four months should be between $1.344 and $1.350. Industrial production in the United States rose above expectations in December due to the cold weather boosting demand for heating, hinting to a moderate growth in the industrial sector.
Market experts believe that the gold’s $1.326 per ounce barrier could push prices to test. Analysts also pointed out that a correction in the digital currency markets could support the price of gold. Bitcoin’s value has fallen by more than 10%, reaching a price of less than $10,000 for the first time since December 1. Recently, the world’s most popular digital currency has lost more than half of its value after peaking close to $20,000.
Meanwhile, the dollar index rose against a basket of six major currencies by 0.33%, trading at 90.84 points, after reaching a barrier of 90.11 points on Wednesday, the lowest level since December 31, 2014.
In other precious metals news, silver was up by 0.1%, at $99.16 an ounce, while palladium fell by 0.4%, trading at $1.110 an ounce. Platinum fell by 0.1%, hitting $ 996.20 an ounce, after reaching its highest level since September 8 in the previous session, trading at $1.006.
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