Gold is edging down

Gold is edging down, supported not only by a stronger dollar, but also by another sizable sell-off in ETF gold holdings. The latest figures show that ETF gold holdings declined 12.2 tonnes, putting total holdings at 1,640 tonnes. This is a decline of 39 tonnes since the start of July.

http://goldprice.org/gold-news/uploaded_images/1650-gold-price-796088.jpg

At the same time, we are seeing very little buying interest in the physical market out of Asia, which is assisting gold’s decent. Gold could continue to struggle today. European equities are under pressure for the first time this week, and the futures market signals similar for US equities. After Mr Bernanke indicated that the Fed funds rate should remain low for some time to come, US bond yields eclined sharply, supporting the US dollar. We expect a range-bound day for gold in the absence of any major data releases, although the bias could be to the downside. Gold support is at USD943 and USD940, with resistance at USD953 and USD958.

Malaysia gold price may face the same as US gold and may drop from RM108 level.

Public Bank Gold Investment Account as at 22/07/09 3:53 PM

Selling PriceBuying Price
1 gramRM 110.8400RM 106.5300

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