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Gold losing its shine

FXStreet (Guatemala) - Gold continues to run with the offers made at the start of this week when the yellow metal slid for a fifth straight session and hitting a fresh four-month low at $1,240.69 an ounce, its lowest since early February.

Technically the charts are bearish with $1,230 as a possible target for the bears ahead of the psychological $1,200 mark per ounce. $1,214 may bring support prior to this test as a level identifiable on the daily charts for the end of last year and through the congestion. One of the major concerns here are Chinas stock pilling and the risks that prices would fall further if Chinese banks begin to sell physical gold after their record imports last year.

China HSBC Manufacturing PMI came in at 49.4 below forecasts (49.7) in May

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China HSBC PMI (final) lower-than-expected

The HSBC Manufacturing PMI came at 49.4 vs 49.7 exp and 48.1 last, confirming that the economy is stabilizing, although too pre-mature to jump into conclusions such as the economy has bottomed out.
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