SINGAPORE – Gold edges higher Wednesday, recovering from a 2.5 percent drop the previous day if the market again a surprise rate hike by China. China’s central bank raised rates for the first time in nearly three years, a step that the beginning of a more brand aggressive phase of monetary tightening in the world
fastest-growing major economy.
The dollar rose on the news, but slipped against a basket of currencies on Wednesday, strengthening gold.
“We see a bit of bargain hunting. Market have not really seen a turnaround, even though there are talks
of correction, “said Ronald Leung, a physical dealer Lee Cheong Gold Dealers in Hong Kong.
* Gold has support around $ 1,330 if buying from the front
* Gold bounces 1.8 pct of sharp falls on Tuesday
* Gold to rebound from $ 1,351 – technicals
* Coming up: U. S. Fed Beige Book, 1800 GMT
Changes in policy in the United States will likely continue
The factor most closely in the market.
“As long as interest rates in the U.S. remains on the low side,
and China’s interest does not rise too quickly, the market
still has a chance to move higher, “said Leung.
XAU = Gold gained nearly 0.3 percent to $ 1,340 a
ounce by 0515 GMT. It fell to a two-week low of $ 1,334.45 on
Tuesday, falling by the most since early July and more than
$ 50 less than an all-time high of $ 1,387.10 hit last week.
The most active gold futures contract on the Shanghai
SHAUZ0 Futures Exchange lost more than 2 percent to 287.15
yuan per gram.
“In the short term, gold under pressure as
investors switch to dollar commodity, “said Hou
Xinqiang, an analyst at Jinrui Futures in China.
“For gold, we may see a correction where the prices
as low as $ 1,300. ”
Companies in the SPDR Gold Trust (GLD) fell less than a
t to a one-week low of 1,300.089 tons. [GOL / SPDR]
Spot silver XAG = gained 1.8 percent to $ 23.73 per ounce,
after tumbling 4.2 percent in the previous session.
Precious metals prices at 0515 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1340.00 4.00 +0.30 22.30
Spot Silver 23.73 0.41 +1.76 41.00
Spot Platinum 1671.00 3.50 +0.21 13.91
Spot Palladium 572.75 -0.33 -0.06 41.25
TOCOM Gold 3514.00 -71.00 -1.98 7.82
69621
TOCOM Platinum 4404.00 -49.00 -1.10 0.52
12296
TOCOM Silver 62.50 -1.40 -2.19 20.89
1633
TOCOM Palladium 1510.00 -25.00 -1.63 29.61
425
Euro/Dollar 1.3780
Dollar/Yen 81.39
TOCOM prices in yen per gram. Spot prices in $ per ounce.
source:reuters
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