Spot gold rose to its highest in a week and the other half on Tuesday as the dollar weakens after eurozone policymakers sealed a deal for a second rescue plan for Greece. Gold has drifted between $ 1,700 and $ 1,750 in the past two weeks, after the ups and downs in the struggle of Greece to obtain a much-needed rescue package. “Gold may remain in a consolidation phase in the near future, because it is missing a catalyst, “said Hou Xinqiang, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen. “The supporting factors – the eurozone debt crisis and expected to loose monetary policy in the world -
there for a while and need something new to gold break the range. “
Spot gold moved up 0.4 percent to $ 1,740.35 per ounce
by 0624 GMT, after touching a one-week high of $ 1,740.49.
U.S. gold rose 1 percent to close Friday at
$ 1,743.5 after the Greek bailout, catching, winning
spot prices after the U.S. market closed on Monday for a public
holiday.
Eurozone finance ministers sealed a 130 billion euro ($ 172
billion) bailout for Greece on Tuesday to avert a chaotic
standard in March after persuading private bondholders to take
greater losses and Athens to commit to deep cuts.
.
The decision will help in Athens to solve immediate payment
needs, but Greece still faces a bleak financial and economic
prospects in the coming years.
The dollar lost 0.5 percent against a basket of currencies
, The making of commodities priced in dollars cheaper for
holders of other currencies.
The prospects of further liquidity injection by the European
Central Bank next week will also help to keep prices buoyant, because the
will help keep the cost of holding bullion low.
Technical analysis suggested that spot gold is facing resistance
at $ 1,735 per ounce, and a break above this level could send
prices to $ 1,747, Reuters market analyst Wang Tao said.
“The physical market is very quiet and there seems to be
less interest funds, “said Peter Fung, head of dealing at
Wing Fung Precious Metals in Hong Kong,
Fung said that the premium on gold bars were steady in Hong Kong
$ 1 to $ 1.50 per ounce over London prices.
Money managers cut their net long positions in U.S. gold
futures and options by about 6 percent in the week of 14 February
their first decline in five weeks, said the U.S. Commodity
Futures Trading Commission.
Spot platinum rose 0.8 percent to $ 1,653.50 per ounce,
nearly 19 percent so far this year, benefiting partly from
deliver care in top producer South Africa.
Impala Platinum, the world’s second largest
platinum producer, has agreed to re-instate all 17,200 employees
who were dismissed after an illegal strike, aiming to end
dispute that the company’s largest mine, the miners ‘paralyzed’
union said.
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