BENGALURU: Gold recovered on Thursday from a three-week low hit in the previous session as the recent drop in metal prices and an easing of the U.S. dollar from multi-month highs stoked buying.
Spot gold was up 0.8 percent at $1,222.41 per ounce, at 0744 GMT, after falling for three sessions in a row. Gold touched its lowest since Oct. 11 at $1,211.52 per ounce on Wednesday.
U.S. gold futures were up 0.9 percent at $1,225.4 an ounce.
Investors are wary of a potential saturation in currencies ahead of the U.S. mid-term elections and amid other geo-political uncertainties, said Brian Lan, managing director at Singapore dealer GoldSilver Central.
“People would like to hold something of value, and gold looks good at this point of time,” Lan said, adding that the dip in dollar was also supporting the metal.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.4 percent after hitting a 16-month high in the previous session.
“Yesterday, a stronger dollar kept gold under pressure. The market was overdone and gold prices fell to about $1,211 … There is some buying interest in the Asian markets at the lower levels,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
A stronger dollar makes dollar-denominated bullion more expensive for users of other currencies.
In the wider markets, battered equity investors got Asia off to a positive start for November, as Thursday’s session benefited from another strong performance on Wall Street.
“The bearish correction in global financial markets has waned off though traders remain guarded on riskier assets for the current term,” said Benjamin Lu, a commodities analyst with Phillip Futures.
“Gold prices look poised to range broadly as investors balance between market uncertainties and a gradual but positive pick up in global equities,” Lu said.
Spot gold may bounce moderately to $1,224 per ounce before retesting a support at $1,211, said Reuters technical analyst Wang Tao.
Meanwhile, global demand for gold rose slightly in the third quarter compared with the same period a year ago as resurgent buying from central banks and retail consumers balanced huge outflows from exchange traded funds, World Gold Council said on Thursday.
Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.12 percent to 754.06 tonnes on Wednesday.
Among other precious metals, platinum climbed 1.4 percent to $847.50 per ounce, having touched an over two-week high of $849.50 an ounce earlier in the session.
Silver gained 1.2 percent to $14.40 per ounce and palladium rose 0.6 percent to $1,085.13.
Post Views: 20
Source: Brecorder