Gold’s gaining over $3 Tuesday

image Tuesday morning bullion drifted higher as bargain hunters resurfaced after the price dropped to its weakest in almost a week Monday, although a strong dollar looked set to limit gains.Gold was worth around $1,005.85 an ounce, gaining $3.30 from Monday New York’s notional close, when a rally in the dollar dragged it down to $995.50, its lowest since September, 15, in volatile trade. Gold was nearly 2% below last week’s 18-month high of $1,023.85 an ounce after attempts to breach last year’s record around $1,030 an ounce were foiled by profit-taking.Trading was damped down in Asia, with Japanese investors away on holiday, while the movement of the dollar ahead of a Federal Reserve monetary policy meet, and a Group of 20 summit, were likely to set the tone for gold prices. Worries that speculators who have built up extremely long positions in New York would liquidate, plus the impact of the IMF’s plan to sell gold, were still at the back of investors’ minds, but lower prices could also attract buying from jewelers.But lower prices could attract buying from main consumer India, where weddings take place during the current festive season, which peaks in October with Diwali, the Hindu festival of lights.US gold futures for December delivery rose by $2.20 an ounce at $1,007.10 on the COMEX division of the New York Mercantile Exchange, having dropped to a near 1-week low of $996.3 on Monday on worries about fund selling. The noncommercial net long position in gold futures on the COMEX division of the New York Mercantile Exchange stood at an all-time high of 235,647 lots for the week ended September, 15, data from the Commodity Futures Trading Commission showed.The SPDR Gold Trust reported its holdings flat at 1,101.735 tonnes as of September, 21, edging up from 1,086.479 tonnes the previous day.


Comments are closed.