Gold near two-month low
Pakistan (Aug 24) Gold ticked up slightly on Friday after a five-day losing streak but held near a two-month low and was headed for its worst week in five, hurt by strong US economic data and fears that the Federal Reserve could hike interest rates sooner than expected.
Bullion was hit hard after minutes from the Fed’s July meeting on Wednesday showed policymakers debated whether interest rates should be raised earlier given a surprisingly strong job market recovery.
The metal came under particular pressure on Thursday when a break below the 200-day moving average of $1,284 an ounce triggered stops and sent prices tumbling over 1 percent.
“The technical picture for gold is very weak at the moment. We could slide all the way below $1,250, especially if there is more evidence about an earlier rate increase,” said a precious metals trader. “The stronger dollar isn’t helping either.”