o turns volatile on profit selling !
Gold prices were slightly up but remained volatile in Asian trade Wednesday as some investors took to profit selling.Gold for immediate delivery was seen trading at $1225. 81 an ounce at 12.00 noon Singapore time while U.S. gold futures for December delivery were steady at $1,227.5 an ounce.Analysts however said, the precious yellow metal remained highly volatile and may swung between gains and losses during the day as record prompted some investors to sell to lock in gains.
Meanwhile, holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, increased 7.91 metric tons to 1294.60 tons. The metal gained as much as 6.2 per cent in the three weeks to Tuesday’s high as concern deepened that the global recovery may falter.The Dollar Index, a six-currency gauge of the dollar’s strength, rebounded as much as 0.2 per cent today after dropping as much as 0.6 per cent Tuesday.
The dollar has weakened about 7 per cent since touching a 15-month high of 88.71 in June.On Tuesday, gold rose to a 1 1/2 month high, gaining for a fourth straight session as a weak dollar and the resurgence of risk appetite prompted investors to pile in.Spot gold hit $1,228.45 and closed at $1,225 an ounce against $1,222.85 while US gold futures for December delivery settled up $2.10 at $1,228.30 an ounce.Gold, which had traded in a broad range for two months, has been in rally mode on worries about a double-dip recession after a flurry of weak economic data and the Federal Reserve's downgrade of its economic outlook.
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