SINGAPORE (Commodity Online) : Gold eased slightly in Asian trade Wednesday after an overnight rally, boosted by a weak dollar against the euro.

Gold for immediate delivery was seen trading at $ 1116.92an ounce at 11.30 a.m Singapore time while US gold futures for April delivery was at $ 1116.67 an ounce at the same time.



On Tuesday, Spot gold rallied to two-week highs on Tuesday as the euro recovered from recent hefty losses against the dollar and as investors snapped up gold to hedge against debt default risks in Europe.

Spot gold closed at $1118.95 an ounce after hitting as high as $11120.80 earlier in the day while April delivery settled at $1119.80 an ounce on the COMEX division of the New York Mercantile Exchange.

Analysts said euro's recovery sparked buying in oil and other commodities as a weaker dollar makes dollar-denominated commodities cheaper for holders of non-dollar currencies.

The euro held steady on Wednesday after rebounding against the dollar to post its biggest one-day gain since July the day before, as traders bet the single currency had slipped too far in recent weeks over worries about Greece's public finances.

Rallying commodities and gains for equities markets also boosted sentiment, reflecting the return of risk appetite among investors, they added.

Meanwhile, holdings at the SPDR Gold Trust rose 0.3 percent or 3.046 tons from the previous business day to 1,109.424 tons as of Feb. 16. It was the first increase in holdings since Feb. 5.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook