DUBAI, June 8 (Xinhua) -- After the price of the yellow metal failed several times to crack the resistance level at 1,400 U.S. dollars per ounce, upwards momentum decreased further as physical demand has slowed down, said an expert on gold.
After short rise to 1,414 dollars per ounce on Thursday, Gold closed Friday down at 1,385 dollars per ounce.
"It has been disappointing to see that gold, again and again, could not hold to gains and prices above 1,400 dollars," said Gerhard Schubert, head of precious metals at bank Emirates NBD in Dubai, in his weekly commentary released on Saturday.
Schubert said he does not expect the U.S. federal to reduce quantitative easing too soon in 2013, a move which would indicate growing inflation rates which usually give gold prices a boost.
Gold is considered a safe harbor asset during times of money devaluation, recessions, crises and wars.
Regarding eventual support from China and India, Schubert noted that the turnover figures on the Shanghai exchange have also retreated from their highs "and modest physical off-take is reported from Chinese market participants."
In addition, the expert mentioned the Indian government's measures to curb gold imports as an additional brake to a upwards momentum.
Schubert said overall it is difficult to see where the next spark should come from, which would make gold rally above and sustain the 1,400-dollar level.
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