THURSDAY, 11.30AM
GOLD looked ready to begin testing the $330/oz barrier on Wednesday when it traded as low as $331,45 in London before closing $1,30 down on Tuesday’s price at $332, 35. The metal closed in New York $2,80 down at $331,15.
Bullion’s poor fortunes were mirrored on the Johannesburg Stock Exchange, where the gold index lost four points to a new low of 965, which hobbled the industrial index, causing it to shed three points to 7 417 after six days of straight gains.
Analysts continue to post a negative outlook for gold, as low world inflation, poor comparative returns and fears of continued central bank and pre-emptive selling take their toll on the precious metal.
The bond market, meanwhile, surged to a new year-long high on Wednesday, spurred by overnight news that the Reserve Bank had completed 50% of its budgeted capital market funding in the first quarter. The key R150 government long bond yielded slightly lower to close at 14,235%, but analysts believe conditions are not right for the yield to drop much further.