Buy e-gold
Sell e-gold
Gold Rises in Asia as Lower Prices Lure Buyers, Possibly Funds
Sunday, November 19th, 2006 Posted in Gold News |
Gold prices have climbed 21 percent this year as declines in the dollar made the precious metal less expensive for buyers using other currencies.
Source: Bloomberg
Gold Rises in Asia as Lower Prices Lure Buyers, Possibly Funds
By Thomas Kutty Abraham
Nov. 16 (Bloomberg) — Gold prices rose in Asia after a drop of 1.4 percent in the past week attracted renewed buying interest and led to speculation that funds could step up purchases in the coming weeks.
Gold demand fell three percent to 817 metric tons in the third quarter from the same period a year ago as price volatility discouraged purchases by investors and jewelers, the producer- funded World Gold Council said yesterday. Investment demand was down 10 percent to 111 tons, it said.
Funds which reduced buying in the third quarter may increase purchases, Koichiro Kamei, president of Market Strategy Institute Inc. in Tokyo, said. “I’m very bullish on gold. Pension funds and exchange-traded funds are expected to step up buying,'’ Kamei said. “Gold may reach $660 by the end of this month.'’
Gold for immediate delivery gained as much as $1.83, or 0.3 percent, to $624.92 an ounce. The metal traded at $624.65 at 8:53 a.m. Mumbai time.
Gold futures for December delivery rose as much as $1.60, or 0.3 percent, to $625.40 an ounce in after-hours trading on the Comex division of the New York Mercantile Exchange. It traded at $625.20, or $1.40 cents higher, at 8:53 a.m. Mumbai time.
Gold prices have climbed 21 percent this year as declines in the dollar made the precious metal less expensive for buyers using other currencies.
Gold will trade in a range of $620-$631 an ounce until investors get a clear idea of whether the U.S. Federal Reserve will further increase interest rates, Darren Heathcote, head of trading at Investec Bank (Australia) Ltd. in Sydney, said.
“Gold is going to be in a tight range until we have the U.S. consumer price data. That should give a better picture about the U.S. economy,'’ he said.
Federal Reserve officials were concerned in October about persistent inflation and became more optimistic about the outlook for economic growth, according to minutes of a meeting on Oct. 24-25 released in Washington yesterday.
A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.
To contact the reporter on this story: Thomas Kutty Abraham in Mumbai at tabraham4@bloomberg.net .
Print This Post