Gold reaches a 10-week low (Reuters) (25-01-2011)

SINGAPORE – Spot gold hit a ten week low on Tuesday supported by safe-haven demand and tight supply in Asia. It fell below $1,330 for the first time in about ten weeks. It recovered to $1,332.85 an ounce by 5 a.m. EST, but remains on course for a fourth consecutive day of decline.

The Relative Strength Index fell to 32.675, its lowest since late October 2008 and close to the oversold level at 30.

U.S. gold futures fell nearly one percent to $1,332.2 while strong hold for gold prices is estimated to be around $1,320.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 10.926 tons, its biggest one-day loss since early October, to 1,260.843 tons by Jan 24.

Spot silver fell to $26.64 an ounce, its lowest in nearly two months. It was trading at $26.78, down half a percent. The RSI fell to 33.152, its lowest since early February last year.

Holdings in the iShares Silver Trust gained 0.8 percent to 10,478.08 tons, off an 11-week low of 10,394.53 tons on Jan 21.

Spot platinum fell by nearly one percent to $1,795, being the only precious metal with price rise so far this year and spot palladium shed 1.4 percent to $798, with a nearly 10-year high of $825.50 within sight.

Source: Reuters