Futures & Commodities

Gold's bad day gets worse, tumbles to near 4-month low

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Gold fell to its lowest in nearly four months on Friday and was on track for its biggest weekly decline in two months, as a string of record closes on stock markets and softening demand in Asia weighed on prices.

Spot gold was down nearly 1 percent at $1,246 an ounce, its lowest since early February. U.S. gold futures for June delivery ended down $10.70 an ounce at $1,245.60. Dealers pointed out that bullion traveled over the technically significant "death cross," the term for when an asset's 50-day moving average falls through its 200-day average.

Week on week, the metal is down 3 percent, the most in any week since late March.

Chart: Precious Metals

"Bullion is hovering near fresh 16-week lows as liquidation pressure remains after heavy profit-taking earlier in the week," VTB Capital analyst Andrey Kryuchenkov said.

"The market could take more downside in technically-driven selling, with little buying interest on the physical side or, indeed, any substantial investor appetite."

"With the U.S. economy showing robust recovery signs... investors will be more attracted to the likes of equities, or even platinum group and base metals, given the more appealing fundamentals linked to the industrial growth recovery."

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Expectations remain that stronger U.S. economic data will support the Federal Reserve's policy of paring back its bullion-friendly stimulus measures despite Thursday's weak first-quarter growth data.

The S&P 500 index was flat on Friday after climbing to its third record-high close in four sessions on Thursday as traders shrugged off the report showing the economy shrank in the first quarter and bet on improvement in the second quarter.

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