Gold, little changed in Asian trade may decline as signs that the global economic recovery, root rekening SAP investor demand for the metal as a store of value. Gold for immediate delivery lost $ 1.11, or 0.1 percent, to $ 1,211.23 an ounce at 12:47 pm in Tokyo. Singapore government today raised the forecast for the year to economic growth as much as 15 percent, while Intel Corp., the largest chipmaker, yesterday a record turnover in the second quarter.
“It is clear, safe haven demand for gold is fading as evidence of an economic upturn occurs,” said Park Jong Beom, Seoul-based senior trader with Tong Yang Futures Co. “Still, gold is likely to be supported above $ 1,200 level and result of dollar weakness. ”
The euro traded near a two months high versus the dollar as the results of Intel removed the fact that a rebound in technology spending is losing steam. Singapore’s economy expanded at an annual 26 percent pace in the second quarter after a record surge in the previous three months, the Ministry of Commerce said.
Bullion has risen 10 percent this year, touching a record in June, as investors sought a shelter from the prospect of currency depreciation and concerns that global economic recovery could falter. SPDR Gold Trust holdings in the largest exchange-traded fund backed by bullion, was unchanged yesterday at 1314.82 tonnes website of the company.
“The trading range is likely to be maintained in the near future as investors await the outcome of the earnings season to further shed light on the economic recovery,” said Yi Ling Ong, a Singapore-based analyst at Phillip Futures Pte. “For the last few sessions, gold was range-bound trading between $ 1,185 and $ 1,214,” said Ong.
Gold for August delivery in New York fell 0.2 percent to $ 1,211.30 an ounce. Silver for immediate delivery was little changed at $ 18.2475 per ounce, while platinum and palladium were little changed at $ 1,528.25 an ounce and $ 463.75 per ounce, respectively.
source:bloomberg
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