No gold market bottom in sight as metal sheds $90

The report finds that the market could witness fresh buying following the steep sale, which was chart-based selling and not triggered by fundamentals.

“There could be marginal solace for markets after the brutal slide in the coming sessions. Technically the near-term support is seen at $933 (spot) and if gold fails to hold above this level, it could slip further to $898 in the coming sessions.

“However, having lost about $90 in less than three sessions, fresh buying interest is most likely to emerge at these levels,” the Vision Commodities report said.

However, Vision Commodities Services, a member of Dubai Gold and Commodities Exchange (DGCX), advised high caution before fresh buying is attempted.

On Friday, gold dipped in trade thinned by holidays in key bullion centres in Asia, but the metal held above a one-month low hit the previous day, with dealers expecting bargain hunters to resurface at lower levels.

Gold eased to $916.60/917.40 an ounce from $920.30/921.10 ounce late in New York but off a one-month low at $904.65 struck on Thursday when funds cashed in bullion to cover losses in other financial markets.

“It isn’t clear whether this is a dead cat bounce or fresh buying signals. If $903 holds, sharp gains are possible in the coming sessions and we could even see levels climbing above $970 an ounce,” Pradeep Unni, an analyst at Vision Commodities in Dubai, told Reuters.

Markets in Singapore, Hong Kong, Australia and India were closed for Good Friday.

But in Thailand, one of Southeast Asia’s main consumers, the physical market was abuzz with activity as investors took advantage of the price falls, hoping for better returns in the future with domestic interest rates seen falling soon.

“There have been so many buyers in the past couple of days. I never saw something like this before,” Jiti Tangsitpakdi, head of Thai Gold Traders Association, told Business Radio.