Gold stabilised on Tuesday holding just above a five-year low, but investors still see further price falls a day after the metal tumbled 4 percent. Reflecting losing interest in gold, holdings in top gold fund SPDR Gold Trust fell to the lowest since 2008.
Bullion, after sliding on Monday by the most since September 2013, is trading just above the critical $1,100 an ounce support level, another breach of which could lead to a further selloff, traders and analysts say. "This clearly means that the bearish sentiment for gold remains even at this juncture," said OCBC Bank analyst Barnabas Gan. "I'm still looking at more downside risk for gold," said Gan, who has forecast a price of $1,050 by year-end. Spot gold was up 0.4 percent at $1,101.29 an ounce by 0616 GMT, after an early low of $1,096.65. The metal fell as far as $1,088.05 on Monday, its weakest since March 2010. US gold for August delivery slipped 0.5 percent to $1,101.80 an ounce.
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