Gold slips from ten-week high

Gold has drifted lower as traders book their profits ahead of the US growth figures.

Gold bars
Source: Bloomberg

Gold is trading at $1313, down 0.4% as the momentum from last week’s surge disappears. Yesterday the precious metal hit a ten-week high, and Alastair McCaig stated that heightened tensions in Iraq ensured demand for the asset. The cooling off of equity markets has assisted in the metal's recent jump, and it has spent most of the past four trading sessions within the $1310-$1320 range.

At 1.30pm, the US will release the latest durable goods report and the final GDP report for the first quarter of the year; analysts are expecting a decline of 0.1% and 1.8% respectively.

Last week Federal Reserve chair Janet Yellen cited that US household consumption was only growing moderately. Mediocre figures from the US could ensure the bond-buying scheme does not end any time soon.

The 100-hour move average of $1311 is providing support, and if this level is breached the next support level is $1300. Weak figures from the US or increased uncertainty in Iraq could push gold towards $1325.

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