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Gold rout not over yet – Reuters poll

FXStreet (Mumbai) - Gold prices climbed the most in four months on Friday after the US Non-farm payrolls data failed to meet the market expectations. However, the rebound in Gold witnessed on Friday may be short live as per analysts and traders.

As per the Reuters survey, analysts and traders predict prices could fall to USD 1,000/Oz by the end of the year. Last time the metal was seen at USD 1000 was in 2009. Some of the investment banks have been indicating a rise in physical demand for Gold notably from Asia as one of the reasons due to which Gold could avoid a further fall. However, Reuters survey, which included more than 24 analysts indicates that the rising US equities and an improving US economy would counter the increase in physical demand.

Moreover, 50% of the of the 27 respondents surveyed last week predicted gold prices will breach a critical support at USD 1,100/Oz by the end of this year.

The yellow metal has declined 0.22% to trade at USD 1167.10/Oz, after failing to sustain gains witnessed during the Asia session.

Gold Technical levels

Gold has an immediate resistance located at 1177, above which the prices can test 1183 levels. Meanwhile, a failure to sustain gains above 1161, shall open doors for a re-test of 1150 levels today.

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