(Kitco News) – 2021 has not been a good year for the gold market, and the selling pressure could worsen before it gets better, according to one market analyst.
Suki Cooper, precious metals analyst at Standard Chartered Bank, said in a report Friday that although gold appears to be oversold at current levels, there is still room for prices to move lower in the near term. She added that the market looks fragile, with little investor conviction to support prices.
The gold market is struggling to find consistent momentum after prices on Friday broke below critical support and fell to a fresh eight-month low. April gold futures remain near their recent lows, last trading at $1,721.10 an ounce, down 0.45% on the day.
Cooper said that investment in gold-backed exchange-traded products (ETPs) is becoming a risk for the market as funds start to reduce their exposure to the precious metal.
She added that the next support level to watch comes in at $1,700 an ounce in the current environment.
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