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Gold extended losses to touch one-week lows on Friday after slipping more than two percent a day earlier on a stronger dollar, and dealers said the metal might decline further on technical selling.
The market may watch oil and currency markets for clues in the near term. Gold often moves in the opposite direction to the dollar and is also seen as a hedge against inflation.
The dollar was little changed against the euro, while oil extended a week of losses to strike a new five-month low after US distillate supplies rose sharply and BP said it might be able to restore its Alaskan oilfield sooner than expected.
Gold in New York fell to a two-month low on speculation demand from investors and jewelers won't pick up in the fourth quarter.
``At this stage, we've got to start looking for support down at $600,'' said Michael Guido, director of hedge fund marketing at Societe Generale in New York. ``A lot of confidence has been stripped out of the market.'' |
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