PRECIOUS-Gold extends gains, but heads for third week of losses
2012-03-16 10:18:30
SINGAPORE, March 16 (Reuters) - Gold extended gains on Friday as the
euro rebounded against the dollar, but the precious metal was heading for its
third straight week of losses as a brightening economic outlook in the United
States prompted investors to park their money elsewhere.
Although the U.S. dollar took a breather after a rally, the uptrend was seen
unbroken after the Federal Reserve offered no clues whether it plans to buy any
more major assets to keep interest rates and borrowing costs low -- a move which
would lift bullion's safe-haven appeal.
Gold fell to $1,655.04 an ounce in early trade before rebounding to
$1,662.99 by 0222 GMT, up $5.26. The precious metal hit a low of $1,634.09 on
Wednesday, its weakest since Jan. 16, on fading expectations of more monetary
easing in the United States.
"There's little need for a safe haven at the moment," said Lynette Tan, an
analyst with Phillip Futures in Singapore. "Going forward, we could see gold
maintain at this level, or even fall to about $1,620. I think gold will be
sidelined at the moment compared to the other risk assets."
Bullion, which was heading for its longest losing streak since early
October, struck a record of around $1,920 last September on fears the euro debt
crisis could stall global growth.
U.S. April gold added $3.90 an ounce to $1,663.40 an ounce.
The rally in the dollar took a bit of a breather on Friday as investors
booked profits on recent gains, but dealers said the uptrend could resume
after the latest U.S. data showed further evidence supporting the view that the
recovery in the world's biggest economy was becoming more self-sustaining.
The pullback in the dollar saw the euro bounce off a one-month low of
$1.3002 to $1.3079, with initial support seen at $1.3000, followed by the
Feb. 16 trough of $1.2973.
U.S. economic growth showed signs of becoming more self-sustaining as the
number of Americans claiming new jobless benefits fell back to a four-year low
last week and manufacturing activity in the Northeast picked up this month.
In theory, a stronger dollar makes commodities priced in the U.S. currency
more expensive for holders of other currencies.
"Gold still appears to be taking a hit and, if it is to escape the downward
trend in the short term, it will have to overcome the price resistance at
$1,726 per ounce," said Heraeus in a report. "Only then will it begin moving up
again."
Dealers awaited the release of the U.S. CFTC commitment of traders weekly
data at 1930 GMT, which reflects investors' sentiment on gold. Net long futures
positions held by speculators fell 20 percent in the week up to March 6, the
biggest drop since August 2010.
Platinum was still at a premium to gold because of worries about
supply for southern Africa.
Platinum gained on worries about supply following a month-long stoppage at
the world's second-largest producer Impala Platinum's largest facility,
which the company said cost nearly 200,000 ounces in production and would
probably cut deliveries in April by as much as half.
Among equities, the Nikkei share average steadied on Friday after hitting an
eight-month closing high the previous session, with investors pocketing gains in
exporters after a strong rally, although robust U.S. economic data provided
support.
Precious metals prices 0222 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1662.99 5.26 +0.32 6.34
Spot Silver 32.71 0.21 +0.65 18.13
Spot Platinum 1685.99 6.11 +0.36 21.03
Spot Palladium 702.72 1.67 +0.24 7.70
COMEX GOLD APR2 1663.40 3.90 +0.24 6.17 7021
COMEX SILVER MAY2 32.72 -0.01 -0.02 17.21 1340
Euro/Dollar 1.3081
Dollar/Yen 83.44
COMEX gold and silver contracts show the most active months
TIME | |||||
---|---|---|---|---|---|
Sydney | Tokyo | Ha Noi | HongKong | LonDon | NewYork |
Prices By NTGOLD | ||
---|---|---|
We Sell | We Buy | |
37.5g ABC Luong Bar | ||
5,333.50 | 4,913.50 | |
1oz ABC Bullion Cast Bar | ||
4,426.80 | 4,026.80 | |
100g ABC Bullion Bar | ||
14,205.60 | 12,905.60 | |
1kg ABC Bullion Silver | ||
1,728.40 | 1,378.40 |
Slideshow
© 2011 Copyright By Ngoc Thanh NTGold. All Rights Reserved.
Powered by: Ngoc Thanh NTGold
Powered by: Ngoc Thanh NTGold
- Online: 505
- Today: 5345
- Total: 4646619