Gold futures edged lower Wednesday, threatening to extend a losing streak to four days but remaining not far off the nine-month high set in late January as market bulls look to global growth worries to keep a floor under the yellow metal.
“While the precious metal is seen extending losses in the near term, bulls still remain in control in the medium to longer term,” said Lukman Otunuga, research analyst at FXTM, in a note. “For as long as global growth fears weigh on market sentiment and expectations mount over the Fed taking a break on rate hikes this year, gold will continue shining.
“Focusing on the technical picture, the precious metal has the potential to rebound towards $1,320 if $1,308 proves to be reliable support,” he said. “A breakdown below $1,308 is likely to invite a decline back towards the psychological $1,300 level.”
rose 1.45 cents, or 0.5%, to $2.8315 a pound.