LONDON – Gold rose above $ 1,230 per ounce in Europe on Wednesday as the dollar retreated from the previous days 6-week high versus the euro and as a series of weak economic data required to buy the metal as a safe store of value.
Prices hovered near the 1-1/2 month high of $ 1,237.15 they beat last week, supported by concerns over a slowdown in the global economic recovery.
Analysts said that in addition to external factors, the
metal was likely to support the growing demand for seasonal
as the third quarter starts, set to buy gold
increase of consumers in the major Indian festival season as it gets
underway.
“September is the trade in gold is expected to move in a
generally higher towards the prices to make progress towards
June 21 high, “said MF Global in a daily note.
“The focus should remain on the lack of recovery of the risk
markets since their decimation in May and June, and the
attractiveness of gold amid an environment of asset price
depreciation, “it added.
PRICES
* Spot gold XAU = was at $ 1,233.10 an ounce at 0635 GMT compared with $ 1,229.25 late in New York on Tuesday.
* = XAG Silver was at $ 18.45 to $ 18.34.
* = XPT Platinum at $ 1,510.70 from $ 1,510.
* = XPD Palladium at $ 484 from $ 482.50.
DATA / EVENTS
* German IFO index for August, 0800 GMT.
* U.S. durable goods orders for July, 1230 GMT.
* U.S. sales of new homes in July, 1400 GMT.
* U. S. FHFA home price index for June, 1400 GMT.
* U. S. July building permit revisions.
[ECI / US] [ECI / EURO] [ECI / GB]
[M / calendar] [MTL / diary]
Market News
* The dollar gave some ground against the euro
Wednesday after touching a high of six weeks one day, while the
yen retreated from 15-year high on the dollar and a nine years
peak to the euro. [FRX /]
* Oil bounced from a seven-week low as investors sought
relief in the U.S. durable goods and oil inventory reports for later
In the days after fears of a double-dip recession intensify
with gloomy housing data. [O / R]
* Asian stocks fell, with Japan’s Nikkei to a 16-month low
as investors sold riskier assets after a spate of American concern
economic data, while the yen slipped to a 15-year high on a
Report of Tokyo was considering its currency to weaken. [MKTS / GLOB]
* European stock markets index futures pointed to a lower open
shares on Wednesday after sharp declines in the previous
session, with a negative economic data raising concerns about the
sustainability of economic recovery. [. EU]
GROUND RULES
* Gold consumption is set to remain strong in 2010, with India
and China, which outline the growth and demand
investment increases, the World Gold Council said in a report
released on Wednesday.
* Demand for gold in India in the June quarter climbed 0.2
percent to 164.5 tonnes, due to stronger investment demand,
Data from the WGC has.
* The world’s largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD.P: Quote) said its holdings slipped 1297.948
tonnes in August 1924 of 1299.468 tonnes 19-8. [GOL / SPDR]
* The world’s largest silver-backed Exchange Traded Fund
The iShares Silver Trust (SLV: Quote) said its holdings rose to
9175.38 9151.03 tonnes from August 24 to August 5 tons.
* Chinese gold producer said its Zhaojin Mining
mines in the region in the Chinese province of Shandong Yuan Zhao
production resumed on August 24 after passing safety
examinations requested by the local government.
Technicals
* Gold support at $ 1,217, $ 1,242 resistance, 14-day RSI
at 72.9.
* Silver support at $ 17.80, resistance $ 18.65, 14-day RSI
at 60.8.
* Platinum support at $ 1,490, $ 1,526 resistance, 14-day
RSI at 54.9.
source: reuters
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