Last Updated :
20 September 2010 at 11:30 IST
Gold holds gains on economic worries
SINGAPORE (Commodity Online) : Gold prices continued its northern journey in Asian trade Monday, after hit record high last week, as investors worry about the economic recovery.
Gold for immediate delivery was seen trading at $1277.71 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was seen trading at $1278.94 an ounce on the comex division of Nymex.
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Analysts said sentiment stayed buoyant on speculation of more quantitative easing in the United States, as investors worry about the economic recovery.
Meanwhile, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust rose 6.079 tonnes to 1,300.825 tonnes by Sept 17, the highest since the beginning of the month.
The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings rose to 9,381.74 tonnes by Sept 17 from 9,343.69 tonnes on Sept 16.
The metal received a boost from data showing Thailand raised its gold holdings by a fifth in July through open-market purchases, joining a growing list of Asian nations diversifying into gold amid volatility in other markets.
On Friday, weak data out of the US helped push gold to a new all-time high. Underlying U.S. inflation pressures were muted in August and consumer morale hit a 13-month low this month, keeping alive fears of deflation and spurring bets on further monetary easing.
Gold prices hit an all-time peak of $1,282.97 as the dollar waned on mounting expectations that the Federal Reserve will pump more money into the flagging US economy. US December futures settled up $3.70 at $1277.50 an ounce.
Gold's safe-haven status increased on renewed sovereign debt worries in Ireland, after a report said Irish banks might need a bailout, but Ireland's finance ministry said there was no truth to the claim.
Foreign-exchange volatility also boosted gold's appeal as an alternative currency. Japan intervened this week to weaken the yen for the first time in six years and the United States sharpened its tone on China's currency policy.
MCX Copper 29 June 2012
contract was trading at
Rs 400.9 , up Rs. 3.15 . What's your view on it?
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