Gold remains volatile in Asian trade
Wednesday, 24 November 2010
SINGAPORE, Nov 23 (Commodity Online): Gold remained mixed in Asian trade Tuesday as safe-haven demand of the metal is challenged by a recovering dollar.
Gold for immediate delivery was seen trading at $1361.31 an ounce at 12.30 pm Singapore time while US Gold for December delivery rose 0.2 per cent to $1,361.10 an ounce.
Analysts said the precious yellow metal is likely to remain volatile during the day as uncertainty in Ireland's politics unnerved investors, pressuring the euro and helping the dollar to stand firm.
The bullion was also pressured by coming elections in debt hit Ireland which may hinder aid talks with the EU and the IMF that may weakened the euro against the dollar, curbing demand for the metal as an alternative investment.
The euro fell versus the dollar on concern that Ireland's debt problems will spur other countries such as Portugal to ask for financial assistance.
The euro fell 0.4 per cent to $1.3574 from $1.3627 in New York yesterday. Gold often moves opposite to the US currency, which advanced 0.2 per cent against a basket of six counterparts.
Platinum for immediate delivery fell 0.2 per cent to $1,659.75 an ounce and spot palladium dropped 0.8 per cent to $688.25 an ounce.
Silver for immediate delivery fell 1 per cent to $27.6025 an ounce after gaining as much as 2.1 per cent yesterday.
On Monday, Gold futures inched up , paring earlier losses while silver also edged higher, but platinum retreated.
The most active gold contract for December delivery moved up $5. 5 or 0.4 per cent, to $1,357.8 per ounce.
Gold for immediate delivery was seen trading at $1361.31 an ounce at 12.30 pm Singapore time while US Gold for December delivery rose 0.2 per cent to $1,361.10 an ounce.
Analysts said the precious yellow metal is likely to remain volatile during the day as uncertainty in Ireland's politics unnerved investors, pressuring the euro and helping the dollar to stand firm.
The bullion was also pressured by coming elections in debt hit Ireland which may hinder aid talks with the EU and the IMF that may weakened the euro against the dollar, curbing demand for the metal as an alternative investment.
The euro fell versus the dollar on concern that Ireland's debt problems will spur other countries such as Portugal to ask for financial assistance.
The euro fell 0.4 per cent to $1.3574 from $1.3627 in New York yesterday. Gold often moves opposite to the US currency, which advanced 0.2 per cent against a basket of six counterparts.
Platinum for immediate delivery fell 0.2 per cent to $1,659.75 an ounce and spot palladium dropped 0.8 per cent to $688.25 an ounce.
Silver for immediate delivery fell 1 per cent to $27.6025 an ounce after gaining as much as 2.1 per cent yesterday.
On Monday, Gold futures inched up , paring earlier losses while silver also edged higher, but platinum retreated.
The most active gold contract for December delivery moved up $5. 5 or 0.4 per cent, to $1,357.8 per ounce.