Gold eases after hitting $1174 overnight
Wednesday, 25 November 2009
SINGAPORE, Nov 24 (Commodity Online): Gold prices eased in Asian trade Tuesday after creating yet another record overnight as it surged above $1174 an ounce, an all-time high.
Spot gold was seen trading at $1,159.78 an ounce at 11.30 a.m Singapore time while December-delivery gold on the Comex division was at $1,160 an ounce at the same time.
Precious yellow metal dropped for the first time in three days in Asia as some investors sold the metal to lock in gains after its rally to a record and as the dollar advanced.
On Monday, spot gold reached an all-time high of $1,174 an ounce and advanced 5.6 per cent in the past seven days as the dollar slumped 0.6 per cent against a basket of six major currencies.
In New York trade, gold for December delivery settled up $17.90 at $1,164.70 per
The dollar rose against 15 out of 16 most-active currencies as traders pulled out of bets for a decline ahead of the US Thanksgiving holiday this week, and before the release today of revised gross domestic product data forecast to show the US economy expanded more slowly than initially expected pace in the third quarter.
Meanwhile, holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, rose Monday to 1,121.46 metric tonnes, the most since June 29. Investment demand for the metal as a haven against a declining dollar and inflationary expectations has boosted gold prices by 32 per cent this year.
Spot gold was seen trading at $1,159.78 an ounce at 11.30 a.m Singapore time while December-delivery gold on the Comex division was at $1,160 an ounce at the same time.
Precious yellow metal dropped for the first time in three days in Asia as some investors sold the metal to lock in gains after its rally to a record and as the dollar advanced.
On Monday, spot gold reached an all-time high of $1,174 an ounce and advanced 5.6 per cent in the past seven days as the dollar slumped 0.6 per cent against a basket of six major currencies.
In New York trade, gold for December delivery settled up $17.90 at $1,164.70 per
The dollar rose against 15 out of 16 most-active currencies as traders pulled out of bets for a decline ahead of the US Thanksgiving holiday this week, and before the release today of revised gross domestic product data forecast to show the US economy expanded more slowly than initially expected pace in the third quarter.
Meanwhile, holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, rose Monday to 1,121.46 metric tonnes, the most since June 29. Investment demand for the metal as a haven against a declining dollar and inflationary expectations has boosted gold prices by 32 per cent this year.