SINGAPORE (Commodity Online) : Gold remained highly volatile on the first trading day of 2010 as investors divided over its appeal as a safe haven.
Some investors weighed the impact of a stronger dollar, which typically hurts prices, while some buyer’s boosted holdings after the biggest monthly fall since October 2008.
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Gold for immediate delivery was seen trading at $1,098.30 an ounce at 12.00 noon Singapore time while February delivery stood at $1,098.7 an ounce at the same time.
On the last trading day of 2009, Gold for February delivery rose $3.70 to $1, 096.20 an ounce on the New York Mercantile Exchange.
Gold prices made consistent gains in 2009, rising about 25 percent, due to bullion's role as a hedge against economic uncertainties after the worst economic crisis since the Great Depression.
Meanwhile, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings stood at 1,133.622 tonnes as of Dec. 31, unchanged from the previous business day and near the all-time high of 1,134.03 tonnes marked on June 1.
The dollar edged down from a four-month high against the yen but held firm against other majors on Monday, the first trading day of 2010, as investors focused on U.S. data this week.
The Dollar Index advanced Monday ahead of reports this week that are forecast to show that U.S. manufacturing expanded, factory bookings rose and employment losses almost ceased. Bullion, which touched a record on Dec. 3, slumped 7 percent last month as the U.S. currency strengthened.
The precious metal is often bought as an alternative to the dollar.
