Yellow metal keeps downward trend for 3rd week - report

KUWAIT, April 26 (KUNA) -- The gold price kept falling for the third week, hitting its lowest level of USD 1,175 per ounce since mid-March, an economic report showed here on Sunday.
The dip was affected by selling operations at world gold prices late last week as the price broke the USD 1,193 per ounce mark, said the recent report released by the Kuwaiti Sabaek Company.
Although the US dollar fell against European currencies, mainly the euro and pound, major companies' positive results have drawn liquidity to shares once more and sent gold prices to further drops, it said.
The yellow metal is forecast to continue dwindling away due to the continuing strength of US shares and flight of fluidity to high-reward investments, even though the current prices are viewed as a good opportunity for purchasing, the report added.
The report even predicted further high demand for gold in April and May when actual orders mark the key catalyst for rising prices, noting that the US Fed will remain the main destination for dealers at markets to determine the gold trend.
The gold price will be traded beyond the USD 1,200 per ounce level until the end of this year should the US Fed make a relevant decision in the second quarter or at the advent of the third quarter of this year, the Sabaek's report suggested.
Comparatively, silver maintained its decline for the fourth week in a row, shedding 2.5 percent of its opening prices as the price closed down at USD 15.67 per ounce at the New York Mercantile Exchange (NYMEX), it showed.
The silver price was affected by the positive trend of US stocks and came under pressure due to liquidity flight, the report concluded. (end) mfs.amh.mt