Dubai: Gold extended losses for another session on Monday weighed by gains in the dollar, dimming the yellow metal’s appeal as an alternative investments. The comments from the Federal Reserve that they raise rates soon also pressured the yellow metal.
International spot gold was trading 0.66 per cent lower at $1,199.62 an ounce, while gold on Comex for immediate delivery was 0.31 per cent lower at $1,200.90.
Gold and dollar are considered to be alternative asset, as a rising dollar erodes demand for the yellow metal.
“We see limited upside to gold above $1,225 in the near term, as short covering need to be replaced by real buyers, something that we have so far not seen, especially not in exchange-traded products, where total holdings has been reduced in recent weeks,” said Ole Hansen, head of commodity strategy at Saxo Bank.
“However, technical picture suggests an upward rally to dollar $1,225 or even higher to dollar 1245. But fundamentals are not favourable for such a move,” said Gnanasekar Thiagarajan, director with brokerage Commtrendz Research.
