SINGAPORE (Commodity Online) : Gold prices remained highly volatile in Asian trade Wednesday as a strong dollar to technical selling and regaining stocks affected the prices.
Gold for immediate delivery was seen trading at $1851.04 an ounce at 1.00 p.m Singapore time after hitting as low as $1826.32 an ounce in early trade.
US gold for December delivery was seen trading at $1862.04 an ounce on the comex division of Nymex after hitting as low as $1818.2 an ounce in early trade.
Analysts said technical selling by investors and a regaining dollar pulled down gold prices in Asia while a steep decline in US stocks helped it to maintain its safe haven asset appeal.
They added that the bullion might get some help from Switzerland's decision to peg the erstwhile safe-haven franc to the euro as such a move was considered to boost its appeal.
The Swiss National Bank shocked global markets on Tuesday by saying it would buy unlimited quantities of foreign currencies to prevent the franc from rising above 1.20 Swiss francs to the euro, as it fights to contain the meteoric rise of its currency that threatens its exports and economy.
Meanwhile, Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , remained unchanged from the end of August at 1,232.314 tonnes. In August, the fund posted its largest monthly decline in holdings since January.
On Tuesday, gold for December delivery /quotes/zigman/661658declined $3.60, or 0.2%, to settle at $1,873.30 an ounce on the Comex division of the New York Mercantile Exchange.
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