Gold recorded its biggest weekly percentage dip last week since the five days ending March 10th, hit by the prospect of higher interest rates that could take the shine off the metal. Technical analysts reckon that support $1260 is the key level to watch as momentum downwards accelerates. If prices dip below, gold could slide all the way to $1230 per troy ounce. Given the current session’s weakness, and an improved outlook for US government funding which was reached overnight, pressure may stay intact near-term.
However, ignoring the near-term outlook for gold, hedge funds continue to buy gold futures, increasing their net long position in COMEX gold for the sixth consecutive week according to figures released by the US Commodity Futures Trading Commission on Friday. Gold was last seen trading just below $1262.50 per troy ounce on Monday after opening lower.