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Saturday, October 24, 2009
TOKYO (Reuters) - Gold prices inched up on Friday but were off a six-week high hit the previous day, with investors eyeing the dollar and stocks for direction as growing recovery hopes fuel inflation concerns and boost bullion's appeal as a hedge.
Gold may also benefit from broad strength in commodities as investor risk appetite grows with the rally in equities markets.
Traders said activity was subdued but that they were looking at stock markets, oil prices, the dollar and how overseas markets develop later in the day to determine whether gold can advance toward $960 levels, which they said was the near-term resistance level.
"Risk appetite seems to have picked up quite a bit as seen in rising stock markets," said Adrian Koh, an analyst at Phillip Futures in Singapore.
"If we are looking at gold from a commodities point of view (including oil), then an increase in risk appetite could also support gold prices, as people would tend to buy riskier assets such as commodities," he said.
But if investors view gold as a safe-haven, then a rise in risk appetite would weigh on gold.
"But I guess the former is predominant for now," he said.
Spot gold edged up 0.2 percent to $948.80 per ounce as of 0306 GMT, compared with New York's notional close of $947.15 per ounce o
India gold futures tread water on dollar
MUMBAI (Reuters) - India gold futures treaded water on Thursday as the dollar stayed near its seven-week low against a basket of currencies, analysts said.
The most-active August gold contract was 0.04 percent higher at 14,945 rupees per 10 grams at 11:05 a.m.
The dollar hovered close to a seven-week low as steady stock markets and stronger U.S. home prices offset weak bank earnings and dented the greenback's safe-haven allure.
Gold is considered as an alternative asset to the U.S. currency.
"Gold may be on the higher side later supported by weak dollar and firm crude. The resistance is placed at 15,000 rupees," said Aurobinda Prasad, deputy manager-research, Karvy Comtrade.
Investors would also await jobless claims data from the U.S. to gauge direction in the precious metals complex.
Gold may be in the range of 14,880-15,00 rupees, said Kunal Shah, analyst with Nirmal Bang Commodities.
Open interest for August gold on MCX was at 12,985 lots, down from 13,175 a day earlier. Volume on Wednesday was 25.31 kg
Gold may also benefit from broad strength in commodities as investor risk appetite grows with the rally in equities markets.
Traders said activity was subdued but that they were looking at stock markets, oil prices, the dollar and how overseas markets develop later in the day to determine whether gold can advance toward $960 levels, which they said was the near-term resistance level.
"Risk appetite seems to have picked up quite a bit as seen in rising stock markets," said Adrian Koh, an analyst at Phillip Futures in Singapore.
"If we are looking at gold from a commodities point of view (including oil), then an increase in risk appetite could also support gold prices, as people would tend to buy riskier assets such as commodities," he said.
But if investors view gold as a safe-haven, then a rise in risk appetite would weigh on gold.
"But I guess the former is predominant for now," he said.
Spot gold edged up 0.2 percent to $948.80 per ounce as of 0306 GMT, compared with New York's notional close of $947.15 per ounce o
India gold futures tread water on dollar
MUMBAI (Reuters) - India gold futures treaded water on Thursday as the dollar stayed near its seven-week low against a basket of currencies, analysts said.
The most-active August gold contract was 0.04 percent higher at 14,945 rupees per 10 grams at 11:05 a.m.
The dollar hovered close to a seven-week low as steady stock markets and stronger U.S. home prices offset weak bank earnings and dented the greenback's safe-haven allure.
Gold is considered as an alternative asset to the U.S. currency.
"Gold may be on the higher side later supported by weak dollar and firm crude. The resistance is placed at 15,000 rupees," said Aurobinda Prasad, deputy manager-research, Karvy Comtrade.
Investors would also await jobless claims data from the U.S. to gauge direction in the precious metals complex.
Gold may be in the range of 14,880-15,00 rupees, said Kunal Shah, analyst with Nirmal Bang Commodities.
Open interest for August gold on MCX was at 12,985 lots, down from 13,175 a day earlier. Volume on Wednesday was 25.31 kg
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