 | |  | | 'Oil-led' dips
Gold remains "at risk to further pockets of oil-led liquidation dips," but should find support from physical buying heading into the Indian wedding season, said James Moore, analyst at TheBullionDesk.com.
"Gold's failure to clear $640 suggests the yellow metal needs to spend more time in the $605-$630 area before tracking higher towards year end," he said.
Indeed, gold prices have been pressured by recent weakness in crude futures. Crude futures touched a low under $67 a barrel Thursday as U.S. gasoline supplies rose for a third-straight week. See Futures Movers.
The "drop in gold is almost completely due to the impressive drop in the oil price," said Gold Newsletter's Lundin.
"There has been a substantial geopolitical premium built into both the oil and gold price throughout this year, and this premium has diminished in recent trading sessions," he said.
Looking ahead however, "the slack in speculative demand will soon be taken up by physical buying, as we enter a time of high seasonal gold demand," he said, and that will help support gold prices over the longer term. |  |  |  |  |
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