CM: Gold bullion settles around $1335 following early bounce
FXstreet.com (Barcelona) - The yellow metal is seeing light profit-taking on Monday and settling around $1335.00 a troy ounce, as traders lock in gains following a slight bounce this morning over Asia towards Friday´s high above $1347.00. Late last week, the most active gold contract for April delivery experienced its biggest rise in 12-weeks recovering from a nearly 4-month low around $1310.00.
The gold bullion is benefiting from general unease in the marketplace, as traders turn to safe-haven alternatives in light of the political unrest taking place in Egypt. What´s more, volatility coming from the equity and currency markets is influencing the price of commodities as the US dollar eases of recent highs today. Regarding demand, the market is expecting interest to remain high up until the Chinese Lunar New Year which takes place on Feb. 3rd.
Peter Turville of Compass Global Markets is skeptical of gold´s recent recovery, reporting: ¨We remain firmly bearish as downtrend resistance at $1,350/53 holds and look for a test of $1,300 later in the week. Last night and this mornings move higher was way overdone and we expect a reversal to the downside to accelerate tonight. Support now sits at $1,330 and below at $1,320.¨
