Comex December gold, which is on the defensive early Friday, would have to fall to around $1,320 an ounce to do serious technical-chart damage, says Craig Ross, vice president of ApexFutures.com. “We’re not going to get too worried until we break $1,320,” he says. “If we get a close below that, we think that’s a signal this will be more than a little correction.”
Gold, Silver Decline on China Interest-Rate Speculation, Stronger Dollar
China may increase its benchmark one-year lending rate to 5.81 percent by year-end from 5.56 percent, and the deposit rate may climb to 2.75 percent from 2.5 percent, according to a Bloomberg survey of analysts. Five of the six main industrial metals on the London Metal Exchange, crude oil futures in New York and European and Asian stocks declined.
Gold fell in New York as speculation that China may raise interest rates curbed demand for bullion. Other precious metals slid.
Equities and commodities declined amid speculation the People’s Bank of China is preparing to raise rates to cool growth.
Given the scale of gains posted over the past few weeks, the metals remain vulnerable to a deeper correction as traders lock in profits and generate cash to cover margin requirements in other sectors,” James Moore, an analyst at TheBullionDesk.com in London, said in a report.