Gold remains highly volatile in Asia
Thursday, 29 October 2009
SINGAPORE, Oct 28 (Commodity Online): Gold remained steady near $1040 an ounce in Asian trade Wednesday, recovering from three-week lows hit the day before when the dollar strengthened against the euro.
Spot gold was seen trading at $1040.10 an ounce at 11.00 am Singapore time while gold futures for December delivery were up 0.6 per cent at $1,041 an ounce at the same time.
On Tuesday, spot gold settled at $1,038.8 an ounce while December gold futures settled $7.40, or 0.7 per cent, lower at $1,035.40 an ounce.
Gold hit a three-week low of $1,032.25 Tuesday.
Silver for December delivery fell 56 cents, or 3.2 per cent, to $16.54 an ounce. December copper slid a penny to $2.999 a pound.
The dollar held gains against a basket of currencies Wednesday while the yen rose, as investors trimmed positions in higher-yielding currencies as stocks fell on weaker-than-expected US consumer confidence figures.
The euro moved away from 14-month highs hit against the dollar on Monday as investors also cut back on euro long positions after seeing the pace of its recent rise had been too fast.
Dollar weakness was the main driver for gold's rally when bullion rose above $1,072 earlier this month, as a drop in the dollar makes bullion less expensive for non-dollar holders. Gold is also preferred as a hedge against inflation as well as a depreciating dollar.
Meanwhile, holdings at the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, fell to 1,105.654 tones as of October 27, down 1.22 tones or 0.1 per cent from the previous business day.
Spot gold was seen trading at $1040.10 an ounce at 11.00 am Singapore time while gold futures for December delivery were up 0.6 per cent at $1,041 an ounce at the same time.
On Tuesday, spot gold settled at $1,038.8 an ounce while December gold futures settled $7.40, or 0.7 per cent, lower at $1,035.40 an ounce.
Gold hit a three-week low of $1,032.25 Tuesday.
Silver for December delivery fell 56 cents, or 3.2 per cent, to $16.54 an ounce. December copper slid a penny to $2.999 a pound.
The dollar held gains against a basket of currencies Wednesday while the yen rose, as investors trimmed positions in higher-yielding currencies as stocks fell on weaker-than-expected US consumer confidence figures.
The euro moved away from 14-month highs hit against the dollar on Monday as investors also cut back on euro long positions after seeing the pace of its recent rise had been too fast.
Dollar weakness was the main driver for gold's rally when bullion rose above $1,072 earlier this month, as a drop in the dollar makes bullion less expensive for non-dollar holders. Gold is also preferred as a hedge against inflation as well as a depreciating dollar.
Meanwhile, holdings at the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, fell to 1,105.654 tones as of October 27, down 1.22 tones or 0.1 per cent from the previous business day.