Gold recovers in Asia as dollar dips
Thursday, 21 October 2010
SINGAPORE, Oct 20 (Commodity Online): Gold recovered in Asian trade Wednesday as the dollar eased and on speculation of an immediate increase in demand.
Spot gold was seen trading at 1337.98 an ounce at 12.30 p.m Singapore time while December delivery gold on the Comex in Nymex was seen at $1337.74 an ounce.
Platinum gained 0.3 per cent to $1,668.50 an ounce at 2:33 while palladium rose 0.3 per cent to $572.10 an ounce after reaching a nine-year high of $605.13 last week.
Silver rallied 0.8 per cent to $23.5412 an ounce. The metal reached $24.92 on Oct 14, the highest level for 30 years.
The greenback dropped against most major currencies Wednesday after rising 1.7 per cent Tuesday. Dollar was at $1.3760 per euro from $1.3727 in New York Tuesday, when it earlier reached the strongest level since Oct 5.
Analysts said gold has gained on speculation the Federal Reserve will next month announce asset purchases to revive the US economy, in a measure known as quantitative easing.
Meanwhile, London report says, US treasury secretary Timothy Geithner helped bring down gold prices with his statement that the US is determined not to devalue the dollar to push up exports to China.
This has brought confidence among investors and they have stopped the panic rush to gold. Following this gold prices climbed down Tuesday.
Spot gold was seen trading at 1337.98 an ounce at 12.30 p.m Singapore time while December delivery gold on the Comex in Nymex was seen at $1337.74 an ounce.
Platinum gained 0.3 per cent to $1,668.50 an ounce at 2:33 while palladium rose 0.3 per cent to $572.10 an ounce after reaching a nine-year high of $605.13 last week.
Silver rallied 0.8 per cent to $23.5412 an ounce. The metal reached $24.92 on Oct 14, the highest level for 30 years.
The greenback dropped against most major currencies Wednesday after rising 1.7 per cent Tuesday. Dollar was at $1.3760 per euro from $1.3727 in New York Tuesday, when it earlier reached the strongest level since Oct 5.
Analysts said gold has gained on speculation the Federal Reserve will next month announce asset purchases to revive the US economy, in a measure known as quantitative easing.
Meanwhile, London report says, US treasury secretary Timothy Geithner helped bring down gold prices with his statement that the US is determined not to devalue the dollar to push up exports to China.
This has brought confidence among investors and they have stopped the panic rush to gold. Following this gold prices climbed down Tuesday.