[miningmx.com] — GOLD bounced back in volatile trade after hitting its lowest level on Friday, but it was heading for a weekly loss as investors digested plans by US President Barack Obama to spur economic growth which could dent
bullion’s safe-haven appeal.
Although the lingering debt crisis in Europe and volatile currencies are supportive for gold, the metal could take its cue from Obama’s $447bn jobs proposal.
Spot gold hit an intraday low of $1,853.39 an ounce before rising 0.33% to $1,874.40/oz, which was still below a lifetime high of around $1,920 hit this week.
“I think Obama’s speech was actually better than expected. The market was pricing in for a $300bn dollar package,” said Natalie Robertson, a commodities strategist at ANZ. “Also a senior Republican said the proposal merits consideration, so that could also be seen as a sign the Republicans could pass the bill. The risk for gold is to the
downside, but I think it will settle at around $1,800 to $1,810.”
Other markets shrugged off the speech and instead focused on economic data from China, with the Nikkei down more than 2% for the week and the dollar index off two-month highs.
