Gold for February delivery
GCG3
+0.43%
advanced $4.40 to $1,664.90 an ounce in electronic trading Monday.
Some support for gold on Monday came from a weaker U.S. dollar. The ICE dollar index
DXY
-0.11%
, which measures the greenback against a basket of six other currencies,
traded at 79.409, down from 79.566 in late North American trading
Friday.
Gold’s gain came after the benchmark futures fell $17.40 on Friday to
settle at $1,660.60 an ounce on the Comex division of the New York
Mercantile Exchange after the release of stronger-than-expected Chinese
inflation data.
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However, the metal notched a 0.7% for the past week.
Read: Gold settles lower for the day, up for the week
“Lack of conviction has tainted gold price action, and gold has
struggled to establish its identity as a safe-haven asset,” said
commodity strategists at Barclays Capital.
“The hurdles for gold are mounting, from dollar strength to a softer
physical market, but in our view, a number of positive macro catalysts
still exist that could push prices significantly higher,” they said.
Potential triggers for gold included the U.S. debt-ceiling debate and
other fiscal issues, which the strategists said “are far from fully
resolved” and pose a risk to the U.S. credit rating.
“Risks are skewed towards the near term, [and] we believe that the first
quarter of 2013 will be key in setting the tone of trading,” the
strategists said.
Around the wider metals complex, silver for March delivery
SIH3
+1.03%
advanced 25 cents to $30.66 an ounce.
April platinum
PLJ3
-2.34%
climbed $7.50 to $1,638.70 an ounce, while March palladium
PAH3
-0.68%
advanced $2.40 to $703.85 an ounce.
March copper
HGH3
+0.70%
rose 2 cents to $3.68 per pound.
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