Gold, silver hover near multi-year lows, pausing rout
New York (Nov 6) Gold crawled higher on Thursday, after the prior day's slump in prices to four-year lows tempted some buyers back to the market and as the dollar dipped on profit-taking.
Spot gold was up 0.3 percent at $1,144.30 an ounce at 1433 EST (1933 GMT) in muted trade as investors awaited Friday's U.S. non-farm payrolls data.
Gold hung near the prior day's low of $1,137.40 an ounce, the weakest since early 2010, while U.S. gold futures for December delivery finished down 0.3 percent at $1,142.60 an ounce after nearing Wednesday's over four-year low of $1,137.10.
"We're holding steady today but nobody wants to make a big move ahead of the employment numbers tomorrow morning. If there's a positive number, they (the bears) may take a run at it," said Paul Sacks, principal gold trader at Aurum Options Strategies in New York said.
The U.S. non-farm payrolls report due Friday could boost expectations that the Federal Reserve will move to tighten monetary policy before other major central banks, which could further pressure gold.
WEAK CHARTS, DEMAND WORRIES
Though the dollar index eased on Thursday, its surge in recent sessions has knocked bullion through key chart support at $1,180 an ounce, the lowest level hit during last year's 28 percent plunge, and $1,155 to its lowest since early 2010.
The stronger dollar weighs on dollar-traded commodities, making them more expensive to holders of other currencies.
The euro hit a two-year low against the greenback after ECB President Mario Draghi's comments signaled the ECB would pump more money into the euro zone economy in a bid to revive growth.
Technical analysts have said a test of the $1,000 level could be in the cards after breaking key support.
Concerned mounted over subdued demand in China, the top consumer of the metal. Prices on the Shanghai Gold Exchange have been at a discount for most of this week.
The rout does not bode well for gold companies or their investors, said Alexander Keepin, Partner and Co-Head of Mining at international law firm Berwin Leighton Paisner.
"Shareholder returns are likely to be a casualty if the gold price stays at the current levels," Keepin said.
Silver rose 0.4 percent at $15.40 an ounce after tumbling over 4 percent on Wednesday to a 4-1/2 year low of $15.13.
Spot platinum was down 1 percent at $1,192.25 an ounce, and spot palladium fell 1 percent to $747 an ounce.
Source: Reuters
