Gold, silver retreat on strong dollar
Wednesday, 29 September 2010
SINGAPORE, Sept 28 (Commodity Online): Gold prices retreated marginally in Asian trade Tuesday mainly after the dollar strengthened while silver also eased from a 30-year high.
Spot gold was seen trading at $ 1291.88 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $1295.01 an ounce on the comes division of Nymex.
Immediate-delivery silver dropped as much as 0.8 per cent to $21.2463 an ounce after yesterday rising to $21.6175, the highest level since October 1980.
The dollar got a reprieve Tuesday, helped by a report the Federal Reserve was weighing a more open-ended, smaller-scale bond buying programme compared with 2009.
Analysts said a rebound in the US dollar prompted speculators to lock-in gains. Gold has gained as much as 18.5 per cent this year.
Although lower prices could stir up purchases from jewellers, gold's failure to stay above Monday's peak could spur more selling from investors, they added.
Dollar Index, a six-currency gauge of the greenback's value, advanced as much as 0.2 per cent after touching the lowest level yesterday since Feb 3.
On Monday, Gold hit a record high of $1,300 an ounce, extending a two-week rally of fresh records on concerns over an economic recovery, but ended flat after the euro slipped off five-month highs against the dollar.
Spot gold was seen trading at $ 1291.88 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $1295.01 an ounce on the comes division of Nymex.
Immediate-delivery silver dropped as much as 0.8 per cent to $21.2463 an ounce after yesterday rising to $21.6175, the highest level since October 1980.
The dollar got a reprieve Tuesday, helped by a report the Federal Reserve was weighing a more open-ended, smaller-scale bond buying programme compared with 2009.
Analysts said a rebound in the US dollar prompted speculators to lock-in gains. Gold has gained as much as 18.5 per cent this year.
Although lower prices could stir up purchases from jewellers, gold's failure to stay above Monday's peak could spur more selling from investors, they added.
Dollar Index, a six-currency gauge of the greenback's value, advanced as much as 0.2 per cent after touching the lowest level yesterday since Feb 3.
On Monday, Gold hit a record high of $1,300 an ounce, extending a two-week rally of fresh records on concerns over an economic recovery, but ended flat after the euro slipped off five-month highs against the dollar.