Gold held steady despite the metal achieving what chartists dramatically call a “death cross”.
As the name implies it is not good news and occurs when the 50-day moving average price drops below the 200-day moving average.
Technical analysts said both the averages were pointing lower when they crossed and that tends to mean lower prices ahead.
Fundamentals watchers also had plenty of reasons to justify the recent slide in the gold price.
Citigroup has analysed the pattern of gold in 2014: “A rally in February supported by the re-stocking needs of the jewellers after Christmas and the Chinese New Year.
“However, when that caused gold to approach $1400/oz, ETF holders saw an opportunity to offload into the jewellery demand.
“That set a ‘ceiling’ of $1400/oz, the apparent level at which ETF holders are willing to return as sellers. They may be lowering that ceiling every month now. “
Traders, meanwhile, were looking towards economic news later in the week when the ECB gives its latest monthly update on Thursday and the non-farm payrolls data is released on Friday.
If the ECB lower interest rates and the US jobs numbers exceeds expectation, the dollar is expected to pick up which traditionally impacts the gold price.
After an hour on Wall Street, spot gold was trading flat at US$1,245, silver was slightly higher at US$18.79 while platinum was US$5 lower at US$1,426.
Major movers
Randgold Resources down 77p at 4,322p
Fresnillo down 17p at 785p
Anglo American down 34p at 1,457p