Gold above $1,000 level on Wednesday

image On Wednesday gold increased hovering just above $1,000 per ounce but below highs marked the previous day, as investors sold the dollar to buy riskier assets such as stocks and commodities.

Gold rose over $1,000 per ounce on Tuesday on pent-up technical momentum and dollar weakness, but market watchers were mixed on whether the yellow metal could stay above that level.

Traders said Tuesday’s rally was likely a result of massive stop orders being hit and triggering a wave of short-covering as well as fund buying, with little sight of physical demand, exposing the market to the risk of a correction to the downside.

They said the dollar remains the key factor determining the gold market’s direction, and if the dollar continues to be pressured by investors selling it to buy other riskier assets, bullion could extend gains.

As investors grow more optimistic that the worst of the global economic downturn is over and are now trying to estimate the timing of a clear recovery, gold is favoured as a place to park money, he said.

Spot gold XAU= rose as much as 0.8 percent to $1,002.95 per ounce before slipping to $1,001.15 as of 0530 GMT, compared to New York’s notional close of $995.20. Spot gold had risen as high as $1,007.45 per ounce on Tuesday, its highest since March 2008.

U.S. gold futures for December delivery GCZ9 edged up as much as 0.5 percent to $1,005 per ounce and were trading at $1,003, compared with $999.80 per ounce on the COMEX division of the New York Mercantile Exchange. On Tuesday, gold futures rose to $1,009.70, their highest since February.

There were also no new investment inflows into the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust GLD, which said its holdings stood steady at 1,077.63 tonnes as of Sept. 8.

Precious metals prices at 0530 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1001.10 5.90 +0.59 13.74
Spot Silver 16.57 0.16 +0.98 46.38
Spot Platinum 1288.50 5.50 +0.43 38.25
Spot Palladium 293.50 -0.50 -0.17 59.08
TOCOM Gold 2981.00 -9.00 -0.30 15.86 37262
TOCOM Platinum 3836.00 63.00 +1.67 44.65 12899
TOCOM Silver 491.20 -3.50 -0.71 53.84 399
TOCOM Palladium 875.00 2.00 +0.23 59.09 253

TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce.


Comments are closed.