Gold edged higher on Tuesday, extending gains in the previous session, with healthy physical demand out of Asia and a lower dollar lending support, though an improved global economic outlook has dampened the price outlook. Eurozone finance ministers discussed on Monday having more money in their rescue fund and cheaper emergency loans as part of a package of measures to end the sovereign debt crisis, but they made no firm decisions.
Spot gold edged up 0.3 percent at $1,365.85 an ounce by 0642 GMT, after dipping to an intraday-low just below $1,360. US gold futures gained 0.4 percent to $1,366. "Positive sentiment in the market could reduce some safe-haven demand for gold," said Ong Yi Ling, an analyst at Phillip Futures. Ong said that $1,350 would be a strong hold for gold.
According to Wang Tao, a Reuters market analyst, spot gold will be rangebound between $1,354 and $1,370 for one trading session before plunging again towards $1,349 per ounce, as the downtrend is still intact. Premiums for gold bars rose on Monday to hit another two-year high as jewellers from China rushed to buy ahead of the Lunar New Year, while purchases from the electronics sector helped stir up physical trading in Japan, dealers said. Spot silver gained more than half a percent at $28.42 an ounce, down eight percent so far this year.
Comments
Comments are closed for this article.