LONDON: Gold edged higher yesterday, recovering from last week’s four-year low, as the dollar’s retreat from multi-year highs against a currency basket relieved downward pressure on the metal. A lack of robust buying from the major physical gold markets of China and India, however, along with weak technicals, underscored prospects for further declines, analysts said.
Bullion broke below a key chart level of around $1,180 an ounce on Friday after the Bank of Japan expanded its stimulus programme in a surprise move, lending strength to the dollar. The break prompted a further sell-off that took gold all the way to $1,161.25, its lowest since July 2010.
Spot gold was up 0.2 percent at $1,166.85 an ounce at 1507 GMT, while US gold futures for December delivery were down $3.10 at $1,166.50. Reuters
