Gold dropped to a two-month low during night time trading Monday with subdued sentiment, weak investor interest and low volumes being the primary factors.
Spot gold dropped $15.90, or 1.3 percent to $1,177.20 per ounce at one stage, its lowest since May 21, breaking through downside resistance of $1,180, the next support is now at $1,173.
"Gold closed negatively last week, confirming that the metal is not ready to form a reversal opportunity," Jono Remington-Hobbs at FastMarkets said.
This is despite continuing concerns about the pace of US economic recovery. Also, the softer tone of the gold price appears to have encouraged some profit taking.
We are still seeing positive physical demand for prices below USD$1200
"We continue to see good physical demand for the metal," broker Standard bank said. "The physical market by no means represents the entire gold market, but still, we view its reaction as bullish for gold in a three to six month horizon."
NZD/USD opened in NY at 0.7065 and held the 21 day Moving Average of 0.7057 for most of the early session. RBA minutes being released today will most likely be the main drivers for the NZD, as the primary drivers continue to be external.
Expectation is that the NZD will continue to remain in a holding pattern, unable to break through .71 and testing .703 for the next few days.
DISCLAIMER: New Zealand Mint does not provide financial advice and does not employ financial advisors. Any opinions expressed within news articles are not intended as recommendations. If you are looking for investment advice, please seek independent, specific advice regarding your personal financial situation from a qualified professional.
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