Gold slips from record gains
Tuesday, 5 October 2010
Singapore, Oct 4 (Commodity Online): Gold prices eased in Asian trade Monday after posting record gains last week as traders looking forward for more monetary policy easing by the US Fed.
Spot gold was seen trading at $1315.74 an ounce at 12.30 pm Singapore time while US gold futures for December delivery were little changed at $1,319.20 an ounce on the Comex in New York.
The gold-silver ratio, used to measure how many ounces of silver are needed to buy an ounce of gold, dropped to below 60, its lowest level in more than a year, below the average in the past four years at 60.29.
Holdings of gold in exchange-traded products decreased 2 tons to 2,095 metric tons as of Oct 1. Holdings are up 17 per cent this year, reaching an all-time high of 2,097 tons on Sept 30.
The dollar gained 0.8 per cent versus yen due to short-covering Monday.
The Dollar Index, which gauges the greenback's strength against a basket of six major currencies, gained 0.2 per cent after falling to the lowest level since January on Oct 1 on speculation that the Federal Reserve will ease monetary policy further to stimulate the US economy.
Gold typically moves inversely to the dollar. The index dropped 1.7 per cent last week, the third consecutive weekly loss.
On Friday, Gold prices hit a fresh record above $1,320 per ounce here Friday, ending a record-breaking week as the dollar stumbled on a disappointing US manufacturing survey.
Gold surged to an all-time pinnacle at $1,320.70 per ounce, dragging sister metal silver to $22.15 , which was last seen in September 1980.
Spot gold was seen trading at $1315.74 an ounce at 12.30 pm Singapore time while US gold futures for December delivery were little changed at $1,319.20 an ounce on the Comex in New York.
The gold-silver ratio, used to measure how many ounces of silver are needed to buy an ounce of gold, dropped to below 60, its lowest level in more than a year, below the average in the past four years at 60.29.
Holdings of gold in exchange-traded products decreased 2 tons to 2,095 metric tons as of Oct 1. Holdings are up 17 per cent this year, reaching an all-time high of 2,097 tons on Sept 30.
The dollar gained 0.8 per cent versus yen due to short-covering Monday.
The Dollar Index, which gauges the greenback's strength against a basket of six major currencies, gained 0.2 per cent after falling to the lowest level since January on Oct 1 on speculation that the Federal Reserve will ease monetary policy further to stimulate the US economy.
Gold typically moves inversely to the dollar. The index dropped 1.7 per cent last week, the third consecutive weekly loss.
On Friday, Gold prices hit a fresh record above $1,320 per ounce here Friday, ending a record-breaking week as the dollar stumbled on a disappointing US manufacturing survey.
Gold surged to an all-time pinnacle at $1,320.70 per ounce, dragging sister metal silver to $22.15 , which was last seen in September 1980.