Gold slips in Asia on rising stocks
Thursday, 22 July 2010
SINGAPORE, July 21 (Commodity Online): Gold prices eased in thin Asian trade Wednesday mainly on rising stocks despite the euro edged up against the dollar.
Gold for immediately delivery was seen trading at $ 1190.64 an ounce at 11.30 am Singapore time while US gold futures for August delivery was at $1,191.4 an ounce on the Comex division of the New York Mercantile Exchange.
Analyst said a drop in ETF holdings could prompt more selling later in the day as bullion struggles to hold above $1,190 an ounce.
Meanwhile, world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings fell nearly 0.5 per cent to 1,308.128 tonnes by July 20 from 1,314.211 on July 15.
The holdings hit a record at 1,320.436 tonnes on June 29. Gold struck a record in late June on worries the European debt crisis would spread.
The euro inched up against the dollar ahead of euro zone bank stress test results this week and Fed Chairman Ben Bernanke's semi-annual testimony before Congress Wednesday and Thursday, with investors waiting for comments that could boost speculation about more monetary accommodation.
On Tuesday, spot gold closed at $1,191 an ounce against $1,180.35 late in New York on Monday, having earlier slipped as low as $1,175.35, the weakest price since May 24.
The most active gold contract for August delivery climbed $9.80 , or 0.8 per cent, to finish at $1,191.7 per ounce.
Gold for immediately delivery was seen trading at $ 1190.64 an ounce at 11.30 am Singapore time while US gold futures for August delivery was at $1,191.4 an ounce on the Comex division of the New York Mercantile Exchange.
Analyst said a drop in ETF holdings could prompt more selling later in the day as bullion struggles to hold above $1,190 an ounce.
Meanwhile, world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings fell nearly 0.5 per cent to 1,308.128 tonnes by July 20 from 1,314.211 on July 15.
The holdings hit a record at 1,320.436 tonnes on June 29. Gold struck a record in late June on worries the European debt crisis would spread.
The euro inched up against the dollar ahead of euro zone bank stress test results this week and Fed Chairman Ben Bernanke's semi-annual testimony before Congress Wednesday and Thursday, with investors waiting for comments that could boost speculation about more monetary accommodation.
On Tuesday, spot gold closed at $1,191 an ounce against $1,180.35 late in New York on Monday, having earlier slipped as low as $1,175.35, the weakest price since May 24.
The most active gold contract for August delivery climbed $9.80 , or 0.8 per cent, to finish at $1,191.7 per ounce.