Gold gains in Asia
Wednesday, 29 July 2009
SINGAPORE, July 28 (Bloomberg): Gold gained in Asia, reversing an earlier decline, as the dollar traded near the lowest level in seven weeks against the euro and rising stocks and positive economic data spurred inflations concerns.
Bullion rose for a third day as acceleration in China's economic growth and better-than-expected US earnings have helped to propel the MSCI Asia Pacific Index, which rose for an 11th consecutive day. An upturn in crude oil also fueled interest in the precious metal.
"As the dollar declines, the gold saw prices rising with some interest in gold funds arising as an inflation hedge," said Steve Chun, a trader with Hyundai Futures Co. in Seoul. "A fast-paced recovery in the economy will sustain gains in the precious metal."
Gold for immediate delivery rose 0.2 per cent to $955.82 an ounce at 2:35 p.m. in Singapore, after falling as much as 0.2 per cent. The metal yesterday gained to $958.92, the highest since June 11. Oil for September delivery rose 0.3 per cent to $68.56 a barrel.
The dollar declined to $1.4275 per euro as of 3:37 p.m. in London from $1.4232 in New York yesterday, when it touched $1.4298, the lowest level since June 3.
Market watchers remain divided in their views as to whether the gold will next try for $990, or sink back towards $930 in an overdue correction, Jon Nadler, a senior analyst with Kitco Metals Inc., said in a report yesterday.
"Gold's immediate task is to convincingly take out overhead resistance at this $960 area, and proceed without hesitating to at least the $975 level," Nadler said. "Absent that feat, the $930s lie in wait."
Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at 1,086.61 metric tons as of July 27, according to data on the company's Web site.
Among other precious metals for immediate delivery, silver was up 0.2 per cent at $14.065 an ounce, platinum fell 0.5 per cent to $1,215 an ounce and palladium was down 0.4 per cent at $261.
Bullion rose for a third day as acceleration in China's economic growth and better-than-expected US earnings have helped to propel the MSCI Asia Pacific Index, which rose for an 11th consecutive day. An upturn in crude oil also fueled interest in the precious metal.
"As the dollar declines, the gold saw prices rising with some interest in gold funds arising as an inflation hedge," said Steve Chun, a trader with Hyundai Futures Co. in Seoul. "A fast-paced recovery in the economy will sustain gains in the precious metal."
Gold for immediate delivery rose 0.2 per cent to $955.82 an ounce at 2:35 p.m. in Singapore, after falling as much as 0.2 per cent. The metal yesterday gained to $958.92, the highest since June 11. Oil for September delivery rose 0.3 per cent to $68.56 a barrel.
The dollar declined to $1.4275 per euro as of 3:37 p.m. in London from $1.4232 in New York yesterday, when it touched $1.4298, the lowest level since June 3.
Market watchers remain divided in their views as to whether the gold will next try for $990, or sink back towards $930 in an overdue correction, Jon Nadler, a senior analyst with Kitco Metals Inc., said in a report yesterday.
"Gold's immediate task is to convincingly take out overhead resistance at this $960 area, and proceed without hesitating to at least the $975 level," Nadler said. "Absent that feat, the $930s lie in wait."
Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at 1,086.61 metric tons as of July 27, according to data on the company's Web site.
Among other precious metals for immediate delivery, silver was up 0.2 per cent at $14.065 an ounce, platinum fell 0.5 per cent to $1,215 an ounce and palladium was down 0.4 per cent at $261.