Global Commodities: Gold holds near two-week high in Asia

May 07, 2013

Gold Rises
Gold Rises

Gold neared its highest level in more than two weeks on Monday, but gains may be capped by a rally in equity markets and promising US jobs data that dampened speculation the Federal Reserve may boost monetary stimulus. Bullion has slipped almost 12 percent so far this year, having posted annual gains in the past 12 consecutive years as easy monetary policy prompted investors to buy the precious metal to hedge against inflation and economic uncertainties. http://zaraimedia.com/

Gold rose $7.05 an ounce to $1477.25 by 0624 GMT due to a stronger euro. It hit a high of $1,487.80 on Friday, its highest since April 15, on safe-haven buying spurred by a cut in interest rates by the European Central Bank and the Fed’s decision to stick to its stimulus programme.

“The market is trying to test $1,487 and it has been tested twice. That might be the reason why the market is pushing up. On the other hand we have a slight improvement in funds holding of gold,” said Joyce Liu, an investment analyst at Phillip Futures, referring to a report from the Commodity Futures Trading Commission (CTFC). “If you look at the technicals, gold is still in an upward correction. For it to go into the bull territory, we at least need to break $1,530. For me to confidently call it an upward trend, it needs to break $1,590. We are quite some way off.” US gold for June delivery was at $1,476.90 an ounce, up $12.70. http://zaraimedia.com/

Hedge funds and money managers increased their bullish bets in gold futures and options in the week to April 30 as the price of the precious metal rallied 4.5 percent during the period, a report by the CFTC showed on Friday. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.34 percent to 1,065.61 tonnes on Friday – their lowest since September 2009.  Source Reuters

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