NEW YORK (Reuters) – Gold futures ended a hair lower on Thursday as the market took a breather after rising for the past five consecutive sessions, and the metal must break above key resistance at $1,150 to rise further, analysts said.
Bullion prices have climbed nearly 3 percent so far this week, largely defying a stronger dollar, as persistent fears over the fiscal health of smaller euro zone economies prompted investors to buy the metal as a haven from financial risk.
The price of gold has been largely moving in a trading range between $1,050 and $1,150 since it rallied to a record high above $1,220 in early December, failing to show a clear direction.
The fact that gold had a technical break-out on Wednesday while the dollar was also rallying “speaks volume” for the metal’s strong underlying demand, said Adam Sarhan, chief executive officer at New York-based Sarhan Capital.
Sarhan said that it will be key for gold to close above $1,150 an ounce for the week, as the metal has risen toward the mark several times but had failed each time.
“If it does rise above $1,150, that means we can confirm the break-out. If it doesn’t, we expect some sideways actions to continue.”