After having dived 28 percent last year, the first year of annual losses since 2000, gold futures have climbed about 11 percent since January 1. But physical demand for the yellowish metal might be poised to fall, particularly from China, a top consumer of bullion.
"Gold has really gone against what most expected so far this year," head of commodity strategy Ole Hansen with Saxo Bank A/S in Copenhagen told the news source on Wednesday. "Momentum is positive but RSIs are overbought so it is in need of a correction. The upside seems limited with Chinese demand slowing as the price rises."
At 9:37 am. on Wednesday, gold futures were down 0.48 percent, a $6.37 drop to $1,334.13 per troy ounce. At 9:38 a.m., silver futures slumped 1.23 percent, a 27-cent loss to $21.59 per troy ounce.
Reuters reports the yellowish metal's losses on Wednesday dragged it down from the top value in about four months.
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