Gold’s bad week is getting worse on Thursday with the price for yellow metal falling another US$10 and looking poised to close below its 55-day moving average for the first time since August.
Now down 3.6% this week, gold hit US$1368 an ounce in mid-morning trading, almost $9 lower than the present 55 MA of US$1377 an ounce.
Ashraf Laidi, chief market strategist at CMC Markets said gold has tested this trend measure 5 times over the last 5 months but succeeded in holding above it in each time.
A close below the 55 MA Thursday would run the risk of extending losses towards $1320, he said.
“With US non farm payrolls increasingly expected to show a payback blow out figure of above 250K, the yields implications for metals may be sobering for the time being,” he added.
