SINGAPORE (Commodity Online) : Gold prices recovered in Asian trade Thursday after an overnight dip, the biggest decline in five weeks.

The precious yellow metal gained for the first time in four days after the metal’s drop by the most in five weeks spurred purchases.

Get geopolitical analysis to spot trends

Spot gold was seen trading at $1110.58 an ounce at 11.30 a.m Singapore time, up $1.05 from New York's notional close on Wednesday, when it fell to as low as $1,102.85 an ounce

Earlier, gold for immediate delivery rose as much as 0.3 per cent to $1111.75 an ounce.

U.S. gold futures for April delivery was at $1109.42 an ounce at the same time, having ended 1.3 percent lower on Wednesday.

Bullion has seen a series of correction since striking a lifetime high $1,200 an ounce last December. Although it has rebounded from a three-month low around $1,043 February, a build up in long positions in New York futures has now threatened to cap any gains.

Gold rose above the 50-day moving average on Thursday as bargain hunters resurfaced but it remained below the 100-day moving average, with strong Chinese inflation data triggering worries about further monetary tightening.

Meanwhile, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,115.511 tones as of March 10, down 0.609 tones from the previous business day.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook