Singapore – Gold clawed back some ground in Asia Thursday, with dip buyers coming in on hopes the recent correction has run its course.
Bulls are hoping that support at gold’s 200-day moving average of $1,148 an ounce holds, as it did through 2009.
Gold’s recent sell-off related to some unwinding of hedges against broader financial market risk, said Darren Heathcote, head of trading at Investec in Sydney.
However, he said financial markets remained uncertain about the overall economic outlook, despite recent gains in equities and industrial commodities.
“I don’t think gold is in serious danger of moving markedly lower at this stage,” he said, tipping a retracement into the $1,170s decile in the next couple of sessions.
At 0650 GMT, spot gold was at $1,168.70 a troy ounce, up $5.40 since Wednesday’s New York close, with Tocom June 2011 gold at Y3,292 a gram, down Y7.
“Economic data continues to reaffirm that the economic recovery is slowing and the uncertainty will continue to drive demand for gold in the longer term,” said Phillip Futures in a note.
Overnight weaker than expected U.S. durable goods data hurt risk appetite and helped gold off an intraday and three-month low of $1,156.
Economic data later Thursday include euro-zone July business climate and economic sentiment indicators at 0900 GMT, U.S. July 24 weekly jobless claims at 1230 GMT, and July Kansas City Fed manufacturing activity index at 1500 GMT.
Other precious metals were also in positive territory, with spot silver at $17.60/oz, up 13 cents, helped by the firm trend in industrial metals.
Spot platinum was at $1,543/oz, up $6 and spot palladium was at $472/oz, up $4.
source:- moneycontrol news center.
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