Gold goes up; platinum stops after 6-day rally
Singapore, January 16, 2013
Gold inched up on Wednesday towards a near two-week high hit in the previous session on expectations easy global monetary policies will continue, while platinum took a breather after rising for six straight sessions to a three-month peak.
Spot gold was headed for a third straight session of gains, encouraged by dovish comments from two US Federal Reserve officials supporting the central bank's ultra-monetary policy.
Monetary stimulus by the world's key central banks helped gold rise for a twelfth straight year in 2012, as investors sought to park their value in hard assets with worries that central banks' cash-printing would debase the value of paper currencies.
Spot gold inched up 0.2 per cent to $1,682.44 an ounce by 0307 GMT, just off Tuesday's high of $1,684.90.
US gold was little changed at $1,682.60.
The chart outlook for gold brightened after it broke a resistance level of $1,678 an ounce, which had pressured prices for the past week or so, and prices are expected to rise to $1,701 an ounce, said Reuters market analyst Wang Tao.
But gold's short-term strength could be capped by the lack of liquidity in the market, said Li Ning, an analyst at Shanghai Cifco Futures.
"Technicals and fundamentals are both supportive of gold, but we are missing the flow of liquidity," she said, referring to a more than four-month low in net long positions in US gold futures and options.
"If we see investors pour more money into this market, it will help confirm the upward trend."
Benchmark gold futures contract on the Tokyo Commodity Exchange hit a record high of 4,828 yen a gram, extending its record-hitting rally into the third session.
Spot platinum fell 0.6 per cent to $1,667.61, taking a pause from a six-day winning run that lifted prices by 8 percent and took it above gold for the first time since early last year on Tuesday.
"We saw some longs taking profit last night and this morning," said a Singapore-based trader, adding that heavy selling on Tocom contributed to the price slide.
Tocom platinum rose to an intra-day high of 4,913 yen a gram, its highest since May 2011.
But over the short to medium term, platinum may push higher on the supply concern triggered by top producer Anglo American Platinum's plan to close mines and cut jobs, he added.
Spot palladium dropped 0.6 per cent to $703.95 an ounce, easing from Tuesday's intra-day high of $717.50, a level unseen since early March, 2012. – Reuters
More INTERNATIONAL NEWS Stories
- Malaysian jet may have turned back before vanishing
- No sign of missing plane; Malaysia probes false passports
- Two Europeans not on board 'missing' Malaysian jet
- China draws red line on North Korea
- Saudi sentences three to death for 2003 bombing
- First bitcoin machine opens in UK
- US sanctions will boomerang, warns Russia
- China plans $50bn bank to fund projects
- Sony to sell Tokyo 'birthplace'
- Obama orders sanctions over Russian moves
- Crimea parliament votes to join Russia
- Arab League to be revamped
- 'Upskirting' is legal: Massachusetts court
- Singapore probes 'unnatural' death of bitcoin trader
- Onus on world powers for Syria war crimes: UN
- US, Russia set for talks on Ukraine crisis
- Brent oil drops below $109
- Services outshine manufacturing, pushing up jobs
- Bitcoin bank shut down after hacker attack
- India to kick off world's biggest poll on April 7
- China signals focus on reforms
- Hundreds ready for bitcoin exchange class action
- Space taxi, Jupiter mission in Obama budget
- Putin: Use of force last resort in Ukraine
- Powers to boost Lebanese military, economy
- Egypt bans Hamas activities in Egypt
- Putin ends army exercise, markets rally
- Russia has violated international law: Obama
- Russian markets hit as Putin tightens grip on Crimea
- Iran nuclear deal 'being implemented as planned'