Low volumes across the board failed to provide a clear cut direction to yellow metal last week.
China raised interest rates by 25bps this weekend but even this could not provide a trigger for gold. Traders are happy sitting out of the market. Demand in domestic market remained strong owing to festive season.
Traders were seen willing to book profits at higher levels. U.S. consumer spending showed 0.4 percent rise in November as compared to last month. Jobless claims also fell by 3,000 to 4,20,000 in the week ended Dec. 18.
All these factors are bullish for the economy. Small orders have a bigger impact on price action when there is limited liquidity in the market and this is happening currently with yellow metal.
Gold assets in exchange-traded products fell 3.12 metric tons to 2,101.3 tons. Holdings reached a record 2,114.6 tons on Dec. 20. E-Gold was seen trading in green territory today.
