Gold continues to decline, heavy losses for Silver

The continuing decline of the gold to the trade on Friday as investors weigh developments while awaiting the announcement of the data on the labor market in the U.S. expected to give the trend of the next meeting and the precious metals market. If the data reflect the strengthening U.S. economy, could put further pressure on gold trading prices, which is traditionally considered investment “safety.”

“The recent data reported in the U.S. has made investors more optimistic about the U.S. economy and the employment figures may lead to further liquidations in the gold market,” says Dow Jones Newswires at the Mark O’Byrne, director of Gold Core. The dashboard, the price of spot gold trading at $ 1,359.62 an ounce, near a low days, recording losses of 0.87%. The February contract delivery moved to $ 1,359.4, down by $ 12.3. However, despite concerns about U.S. growth, the fundamentals of the gold remains positive. Demand for gold in physical form is particularly high in Asia, in view of the Chinese new year on February 3, while the Shanghai gold exchange notes historical record turnover in the last three days.

While the downward break in the gold price below the support level of $ 1,360, is expected to lead to further decline, the strong demand for gold coins to China is expected to develop support for $ 1,340, says O ‘Byrne. For its part, the analyst Credit Agricole, Robin Bhar noted that the ongoing concerns about public debt in the Eurozone and the nervousness about fiscal policy that attempts to “deflate” the debt through devaluation of the currency will provide a degree of support the gold this year. The role of gold as differentiators portfolios could be enhanced significantly in 2011, “he adds.

In other metals, silver suffered heavy losses as the silver trading price fell by 1.85% at $ 28.54, a decline in platinum $ 1,719.25, while palladium is moving downward at a rate of 2.2% to $ 742.