Gold extends fall in Asian trade
Wednesday, 10 March 2010
SINGAPORE, Mar 09 (Commodity Online): Gold prices extended falls in Asian trade Tuesday as bargain hunting came to an end as investors looking forward to dollar movements for further direction.
US gold futures for April delivery was seen trading at $1,124.30 an ounce at 11.30 am Singapore time while Spot gold was at $1,120.40 at the same time.
Bullion was also around 1 per cent below a 6-1/2-week high near $1,150 an ounce hit in early March.
Analysts said the precious yellow metal will now tracking dollar movements to help it break free from its current range.
Speculators, who have built up positions in New York on worries about Greece's ability to repay its debt, may unwind holdings further but gold could find support at the current levels.
Dealers shrugged off news that China would be prudent in buying gold as a component of official reserves, which was in line with market thinking the country would not buy bullion in the open market, as it costs less to buy from domestic mines.
On Monday, gold futures closed lower after a New York Federal Reserve announcement on repo counterparties was seen as a gentle reminder that policymakers are at least thinking of the day when they might tighten again.
Lightly traded but nearby March gold fell $11.20, or 0.99 per cent, to settle at $1123.60 an ounce on the Comex division of the New York Mercantile Exchange. Most-active April lost $11.20, or 0.99 per cent, to $1124.
Most-active May silver fell 11 cents, or 0.63 per cent, to $17.272.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,116.120 tonnes as of March 8, unchanged from the previous business day.
Platinum and palladium slipped but held near their recent highs on hopes of steady demand from autocatalysts following robust sales figures in major gasoline markets in China and the United States.
US gold futures for April delivery was seen trading at $1,124.30 an ounce at 11.30 am Singapore time while Spot gold was at $1,120.40 at the same time.
Bullion was also around 1 per cent below a 6-1/2-week high near $1,150 an ounce hit in early March.
Analysts said the precious yellow metal will now tracking dollar movements to help it break free from its current range.
Speculators, who have built up positions in New York on worries about Greece's ability to repay its debt, may unwind holdings further but gold could find support at the current levels.
Dealers shrugged off news that China would be prudent in buying gold as a component of official reserves, which was in line with market thinking the country would not buy bullion in the open market, as it costs less to buy from domestic mines.
On Monday, gold futures closed lower after a New York Federal Reserve announcement on repo counterparties was seen as a gentle reminder that policymakers are at least thinking of the day when they might tighten again.
Lightly traded but nearby March gold fell $11.20, or 0.99 per cent, to settle at $1123.60 an ounce on the Comex division of the New York Mercantile Exchange. Most-active April lost $11.20, or 0.99 per cent, to $1124.
Most-active May silver fell 11 cents, or 0.63 per cent, to $17.272.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,116.120 tonnes as of March 8, unchanged from the previous business day.
Platinum and palladium slipped but held near their recent highs on hopes of steady demand from autocatalysts following robust sales figures in major gasoline markets in China and the United States.