Spot gold held steady on Tuesday, supported by the physical demand outlook, but a stronger dollar following the release of positive US manufacturing data weighed on the market. The dollar index edged higher, with the yen on the backfoot after upbeat data suggested the world's largest economy will accelerate in 2011 following recent run of encouraging data.
"If it (the dollar) has any negative impact on gold, it's only short-term. The market is still on the positive side," said Dick Poon, manager of precious metals at Hareaus in Hong Kong. Spot gold was flat at $1,413.85 an ounce by 0710 GMT. US gold futures lost more than half a percent to $1,415.5 an ounce. Physical buying are expected to return in coming days, after the holiday break, which is seen supportive of gold prices, traders said. Spot silver inched up 0.1 percent to $30.70 an ounce, down from a nearly 31-year high of $31.22 hit in the previous session.
Comments
Comments are closed for this article.