Gold held around the $1,250 mark on Friday trade, rising despite better-than-forecast US non-farm payrolls data had earlier placed safe-haven considerations firmly onto the backburner. But silver outperformed the yellow metal, posting multi-year peaks just below the key $20 level on strong technical picture and weaker dollar.
Spot gold closed the weekend at $1,249.40 per ounce, helped by some light dip-buying, and has reopened the week at USD$1246. On the charts, resistance is seen at recent highs and then the $1,265/1,267 area, with support back at $1,232 and $1,218. "Gold has suffered as better data may suggest less need for safe havens," analyst William Adams of FastMarkets said. "The data has seen money shift from gold in assets that will do better in a better economic environment, like equities and industrial commodities like copper and silver."
Although the outlook for the global economy remains inconclusive and may worsen if more patchy data is released in the near term, the yellow metal looks as though it may need to consolidate before challenging the all-time high of $1,265.30 from the end of June, he added. The NZD opened lower this morning, the Earthquake in Canterbury being foremost in everyone’s minds. The effect of the earthquake has yet to be seen, and make take a while before the ramifications filter through to the markets.
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