Gold prices failed to move upwards in Asian trade Monday after equity markets rose in the region, attracted some investors amid positive reports on global economic recovery.
Gold prices may trade between $1,180 and $1,220 this week. The impulse to see if gold can be pushed below $1,180 was met with fresh long demand last week, leading the shorts to back off and reverse their positions on a short-term basis.
Vietnam, where gold price is much higher than rest of the world, is taking all initiatives to ensure good supply of the precious yellow metal. Last week, the Vietnamese government allowed businesses to re-start importing gold. The country had banned gold import some months back.
Crude oil futures finished the week on a positive note, tracking stocks upward after hitting the low for a month earlier in the week. The benchmark West Texas intermediate contract settled Friday at $76.09 a barrel, up 65 cents on the day. On Tuesday, the contract declined for the sixth session in a row, closing at $71.98, its first dip below $72 in a month.
Alcoa Inc (AA.N), facing a sharp drop in aluminum prices, is losing favor on Wall Street as analysts lower their expectations for the company's earnings.
Alcoa, the largest U.S. aluminum producer, is expected to turn a second-quarter profit after a year-ago loss, but analysts have recently been cutting their forecasts, and one sees the possibility of a return to red ink later this year.
Gold rose 1.5 percent to above $1,210 an ounce on Friday, alongside other commodities such as copper and oil, while underlying cautiousness in the market continued to boost its safe-haven appeal.
Traders said some short-covering and momentum buying after bullion broke above the key $1,200 an ounce mark have accelerated gains, but added that they did not expect further hefty gains.
Oil topped $76 a barrel on Friday and was heading for a weekly gain of more than 4 percent following bullish economic and crude inventory data this week.
U.S. shares seesawed on Friday after three positive sessions in a pre-earnings pause before U.S. corporations kick off earnings season next week.
Gold rose back above $1,210 an ounce on Friday as a stock market rally showed signs of running out of steam, pointing to persistent jitters among investors, with buyers also attracted by the metal's dip to six-week lows.
Oil edged up toward $76 a barrel on Friday and was heading for a weekly gain of more than 4 percent, after a drop in U.S. inventories and positive economic indicators lifted sentiment across markets.
European shares drifted higher on Friday for a fourth straight session, supported by soothing U.S. jobless and retail sales numbers. Wall Street rose in early trade, while the euro slipped off two-month highs against the dollar.
Palladium, which was expected to gain this year due to the high growth in auto ales in China and India, may in fact decline by 12 per cent to about $395 an ounce in the coming weeks.Palladium is hugely used in catalytic converters in cars. Palladium has been the worst-performing precious metal last quarter.
Oil rose toward $76 a barrel on Friday, heading for its biggest weekly gain since May, after a drop in U.S. inventories and positive economic indicators lifted risk appetite and sentiment across markets.
European stocks were up following a rally in Asia, and the euro held near a two-month high, following a fall in U.S. jobless claims and an upbeat view of the euro zone's recovery from the European Central Bank.
If bullion investors thought the recent move by China to free yuan from dollar will help gold in a big way, think again. China seems to be not much interested in dumping gold forever, even though Beijing is ready to give flexibility to yuan.
Gold held near $1,200 an ounce on Friday as some buyers were tempted back to the market by the metal's fall to six-week lows as the dollar softened, but recovering risk appetite is undermining its haven appeal.
Oil rose 0.5 percent on Friday, heading for its biggest weekly gain since May, after data showed robust U.S. demand growth and falling inventories, while positive economic indicators lifted sentiment across markets.
Gold edged up to near $1,200 an ounce on Friday as bargain buying helped offset selling from speculators, who had shifted some of their money to equities on hopes of an economic recovery.
Dealers saw purchases from jewelers and other physical buyers across Asia, keeping premiums for gold bars steady. The electronics sector in Japan was on the sidelines, but bargain hunters snapped up platinum.
Gold prices recovered to follow oil towards north in Asian trade Friday, boosted by bargain buying as some investors jumped back to the precious metal from stocks and currencies.
The statement of China's State Administration of Foreign Exchange (SAFE) is unlikely to impact the bullion market.
The SAFE described Beijing as a responsible long-term investor and doesn't seek the power to control recipients of its investment.
Gold fell below $1,200 an ounce on Thursday, nearing recent six-week lows, as growing optimism over the global economy limited investor interest in perceived safe-haven assets, although consumers helped contain losses.
Oil rose to around $75 per barrel on Thursday, supported by firmer stock markets, U.S. jobless data and a report showing a fall in crude inventories in the United States, the world's biggest consumer.
Gold buying has intensified on the late-June/early July sell offs and capitalising on this fall were the Asian investors, jewelry manufacturers and possibly a few central banks, according to Jeffrey Nichols, Senior Economic Advisor to Rosland Capital.
Jewellery exports and quality of India's gold is set to get a boost with the decision to join the Convention on Control and Marking of Articles of Precious Metals known as Vienna Convention 1972.
Oil rose to around $75 per barrel on Thursday, supported by a rally in stock markets and an industry report showing a sharp fall in crude oil inventories in the United States, the world's biggest oil consumer.
Gold held above $1,200 an ounce on Thursday, having recovered from six-week lows after consumers were enticed back into the market, although gains were likely to be tempered by improving optimism over the global economy.
Gold demand in India is all set to soar in the coming months as the International Monetary Fund has predicted a very high 9.5 per cent growth for the country in 2010.
Those who are skeptical about buying gold considering its high prices may have to wait forever as the yellow metal is set to cross the $1,300 per ounce mark in the second half of 2010.
Consumers, especially in India, have been waiting for gold prices to come down to make purchases. But, according to market analysts, gold prices are set to cross the $1,300 level in the coming months.
World's largest gold producer, China witnessed record surge in gold trading during the first half of this year.
According to Shanghai Gold Exchange, domestic investors' gold frenzy pushed trading volume of the yellow metal to an historic high in the first half of the year, with gold imports also surging to a record.
Gold prices extended gains in Asian trade Thursday mainly on increased physical buying, a firmer euro against the dollar and also on rising stocks.
Gold for immediate delivery was seen trading at $ 1204.48 an ounce at 12.00 noon Singapore time after dropped as low as $1185 on Wednesday.
Oil jumped to a one-week high above $75 on Thursday after earnings euphoria injected positive sentiment into Asian equities, reinforcing overnight gains triggered by an industry report showing U.S. crude inventories plunged last week.
Gold rose to hold above $1,200 an ounce on Thursday on steady purchases from jewelers and other physical buyers after a recent drop to a six-week low, while sentiment was also lifted by gains in equities markets.
Oil prices rose on Wednesday after six straight sessions of losses, lifted by hopes of a strong earnings season and expectations data will show a drop in U.S. crude inventories.
