Gold edged higher on Thursday - Ajcon Global

Gold edged higher on Thursday after a 12% slide since the beginning of last week, as soft data on U.S. economic growth eased fears of a quick end to the Federal Reserve's monetary stimulus. Spot gold rose 0.7% to $1,233.36 an ounce by 0012 GMT, after a 4% fall on Wednesday that took the metal to $1,221.80, its lowest since August 2010. U.S. gold rose about $4 to $1,233.40, also near 3-year lows.

Bullion has been declining since last week after Federal Reserve Chairman Ben Bernanke laid out a strategy to wind down the bank's $85 billion monthly bond purchases in the next few months However, data on Wednesday showed U.S. gross domestic product expanded at a 1.8% annual rate in the quarter, compared with the previously reported 2.4% pace, lending a cautionary note on economic recovery. Gold is still down more than 26% for the year and is headed for its worst quarterly performance since at least 1968.

Gold is braced for more pain with chart patterns showing the precious metal's latest fall exposing prices to deeper losses. The price of silver is set post its biggest quarterly drop on record after falling nearly a third since the end of March, hit by the weaker price of gold and subdued industrial demand. Gold premiums doubled in India on Wednesday as suppliers struggled to meet demand after a ban on consignment imports, but futures prices fell to their lowest in more than a month as international gold prices fell due to a strong dollar.

Source : Equity Bulls

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