Falls below $1,280 briefly but recovers, still near 7-wk
low.Gold hit a fresh seven-week
low on Tuesday, after posting its first monthly drop of the
year, as investors pulled money out of bullion backed
exchange-traded funds in favour of riskier assets such as
equities. Bullion prices are inversely correlated to equities as gold
is seen as a safe-haven asset.
Global feeds:
Spot gold was little changed at $1,283.85 an ounce by
0302 GMT, after dropping nearly 1 percent on Monday. The metal
briefly fell to a low of $1,278.34 earlier in the session - its
weakest since Feb. 11.
"There is a little physical demand coming in at these
levels. But unless Chinese demand recovers strongly, we won't
see much of an impact on prices," said one Sydney-based precious
metals trader.
"But I do think the selling may have been overdone given
that the geopolitical tensions in Ukraine are still not
resolved. We might climb back to $1,300," the trader said.
Another dealer said there was strong support for prices
around $1,280.
"There is good support in the $1,275-$1,280 level. We could
see some consolidation at current levels," the trader said.
Outflows from SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, resumed after a two-day pause.
Holdings of the fund fell 3.89 tonnes to 813.08 tonnes on Monday
- the biggest outflow in more than a month.
SPDR holdings are closely watched to gauge investor
sentiment towards the metal.
On the physical side, dealers said there was a slight
increase in demand as prices fell towards $1,280.
In China, the world's biggest bullion consumer, local prices
have been at a discount to spot prices on weak demand.
The discounts, however, have been narrowing over the last
few days, indicating that some buyers are coming back into the
market.
Prices for 99.99 percent purity gold on the
Shanghai Gold Exchange were at a discount of about 50 cents an
ounce on Tuesday, compared with a discount of up to $8 last
month, according to dealers.
Metal Last Change Pct chg
Spot gold 1283.85 0.21 0.02
Spot silver 19.66 -0.05 -0.25
Spot platinum 1412.99 3.79 0.27
Spot palladium 766 -5.9 -0.76
Comex gold 1283.7 0.3 0.02
Comex silver 19.685 -0.067 -0.34
Euro 1.3773
DXY 80.118
COMEX gold and silver contracts show the most
active months
Mcx technical update:
low.Gold hit a fresh seven-week
low on Tuesday, after posting its first monthly drop of the
year, as investors pulled money out of bullion backed
exchange-traded funds in favour of riskier assets such as
equities. Bullion prices are inversely correlated to equities as gold
is seen as a safe-haven asset.
Global feeds:
Spot gold was little changed at $1,283.85 an ounce by
0302 GMT, after dropping nearly 1 percent on Monday. The metal
briefly fell to a low of $1,278.34 earlier in the session - its
weakest since Feb. 11.
"There is a little physical demand coming in at these
levels. But unless Chinese demand recovers strongly, we won't
see much of an impact on prices," said one Sydney-based precious
metals trader.
"But I do think the selling may have been overdone given
that the geopolitical tensions in Ukraine are still not
resolved. We might climb back to $1,300," the trader said.
Another dealer said there was strong support for prices
around $1,280.
"There is good support in the $1,275-$1,280 level. We could
see some consolidation at current levels," the trader said.
Outflows from SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, resumed after a two-day pause.
Holdings of the fund fell 3.89 tonnes to 813.08 tonnes on Monday
- the biggest outflow in more than a month.
SPDR holdings are closely watched to gauge investor
sentiment towards the metal.
On the physical side, dealers said there was a slight
increase in demand as prices fell towards $1,280.
In China, the world's biggest bullion consumer, local prices
have been at a discount to spot prices on weak demand.
The discounts, however, have been narrowing over the last
few days, indicating that some buyers are coming back into the
market.
Prices for 99.99 percent purity gold on the
Shanghai Gold Exchange were at a discount of about 50 cents an
ounce on Tuesday, compared with a discount of up to $8 last
month, according to dealers.
Metal Last Change Pct chg
Spot gold 1283.85 0.21 0.02
Spot silver 19.66 -0.05 -0.25
Spot platinum 1412.99 3.79 0.27
Spot palladium 766 -5.9 -0.76
Comex gold 1283.7 0.3 0.02
Comex silver 19.685 -0.067 -0.34
Euro 1.3773
DXY 80.118
COMEX gold and silver contracts show the most
active months
Mcx technical update: