Gold extends gains in longest rally since 2012, weak US data aids

epic_research

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Gold extended gains to a seventh session on Thursday in its longest winning streak since 2012 as soft U.S. data boosted expectations the Federal Reserve would keep interest rates low for the time being.

Spot gold rose 0.3 percent to $1,199.30 an ounce by 0306 GMT. Earlier in the session, it hit $1,200.10, its highest since March 6. The seventh day of gains matches a similar stretch in August 2012.

Other traders said gold’s 100-day moving average near $1,209 was also a key level to watch.

Meanwhile, investors remained cautious over gold’s outlook with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, continuing to see outflows. The fund’s holdings fell 0.2 percent to 743.21 tonnes on Wednesday.

Physical demand was also slowing due to the rally in prices. In China, the second biggest gold consumer, premiums – an indication of demand – eased to about $1-$2 an ounce, compared with $6-$7 last week.
 
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