At 0600 GMT, spot gold was at $1,667.20 a troy ounce, up $1.90 from its previous close.
The market continues to be cautious as any further fall in stocks, particularly if the G-20 meeting over the weekend fails to soothe investor concerns about Europe, could force investors to liquidate their gold holdings to raise cash.
At a meeting in Paris, starting Friday, the Group of 20 finance ministers are expected to discuss euro-zone problems among other things, but no quick solutions are expected from the meeting.
A continued selling in equities could force investors to cash out from profitable positions in gold, a Sydney-based trader said, adding he expects the yellow metal to find support at $1,640/oz before moving higher.
"The volatility (in gold prices) seems to have eased for now, so we are seeing some investment and physical demand," said a Singapore-based trader. He, however, said gold needs to break above the key $1,700/oz resistance level before any meaningful rally can resume.
Commerzbank analysts said investors who want to hold gold as a safe-haven, have already invested, as is evident from the stable holdings of gold in exchange-traded funds for some weeks now.
Other metals were also moving in a narrow range Friday.
At 0600 GMT, spot silver was at $31.83/oz, up 8 cents, while platinum was up around $8 at $1,535.75/oz and palladium up $8.12 at $598.50/oz.
Barclays Capital analyst Suki Cooper said underlying demand of platinum group of metals remained healthy in China with automobile sales rising 5.5% on year in September.
On the supply side, Statistics South Africa has reported that production of platinum group metals fell 3.9% on-year in August, following a 10% decline in July, although overall production so far this year is still 9% above last year's levels. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment