Gold edges higher on Thursday, supported by a strengthened euro by Greece was hope closer to a bailout deal, and surprisingly strong China inflation also supported sentiment. Greek political leaders have agreed on all points of a except for a bailout package – pension cuts – and officials said talks with international lenders would remain a deal could be concluded before a meeting of eurozone finance
Ministers on Thursday.
Bail Out Greece will boost the euro against the dollar
for a while, making dollar-denominated assets such as gold
cheaper and more attractive, traders said. This would help gold
enforcement of his profession, even if the Greek deal reduces the safe
status port.
“Greece seems closer to a concrete deal, which weighs
on the dollar and help gold, “said Ronald Leung, a physical
dealer at Lee Cheong Gold Dealers in Hong Kong.
Spot gold edges up 0.1 percent to $ 1,735.69 per ounce
by 0803 GMT, recovering from an intraday low of $ 1,725.49. USA
Gold moved up 0.4 percent to $ 1,738.60.
Gold was also strengthened by a stronger than expected inflation
readout of China, said that investors could mean that the central
bank will wait with aggressive monetary easing for now. But
Many economists expect inflation to February facilitate further
leaving China’s policy of targeted monetary and fiscal easing
intact.
Gold is considered a good hedge against inflation, and
considered a good investment if accommodative monetary
indicate the policies of the outlook for price increases.
Technical analysis suggested that place may fall to $ 1,698
an ounce during the day, according to Reuters market analyst Wang Tao.
Although Greece is widely expected to reach a deal with his
international lenders on the bailout deal, the problems are
likely to continue, supporting safe haven interest in gold in the
longer term, analysts and traders say.
Later in the day, investors will focus on what the European
Central Bank is willing to do to Greece to help keep his
monthly policy meeting, with interest rates expected to remain
hold for an important financing operation later this month.
“Gold is probably in a sideways mode to stay for a while
between $ 1,700 and $ 1,800, unless we see no great surprise that
a clear direction, “says Hou Xinqiang, an analyst
at Jinrui Futures in the southern city of Shenzhen.
The gold-silver ratio dipped to about 51, the lowest level
in more than three months.
Spot silver light fell 0.2 percent to $ 33.90.
Physical gold Asian market remained subdued, because the market
participants waiting for a clear direction from the Greek debt saga.
“We do not see much cooled scrap and buy after prices
rebounded, as everyone in wait-and-see mode, “says Leung of
Lee Cheong.
source:reuters
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