By Luzi-Ann Javier
As far as technical indicators go, the gold rally is losing steam -- and the market is finally taking notice.
Gold futures posted the first back-to-back weekly losses for a most-active contract in more than two months after prices failed to break above the three-week high reached on Aug. 2. Futures ended lower on Friday, even after prices shot up following the release of disappointing U.S. government data that weakened the case for the Federal Reserve to raise interest rates.
“We lost momentum from that early move,” Tim Evans, the chief market strategist at Long Leaf Trading Group Inc. in Chicago, said in a telephone interview. “I think a lot of the buyers that propelled that early move up just threw in the towel, and brought us back to the lower part of the range.”