Reuters logo
PRECIOUS-Gold hits 1-week high as Asian shares tumble
May 30, 2013 / 4:17 AM / 5 years ago

PRECIOUS-Gold hits 1-week high as Asian shares tumble

* Gold rises more than 1 pct as investors flee stocks
    * Gold's consolidation ending -technicals 
    * Coming Up: U.S. Weekly jobless claims; 1230 GMT

 (Recasts, adds fresh quotes, updates prices)
    By Lewa Pardomuan
    SINGAPORE, May 30 (Reuters) - Gold jumped more than a
percent to a one-week high on Thursday as investors dumped
equities, but the metal still risked losing its safe-haven
appeal on worries the U.S. Federal Reserve could scale back its
bullion-friendly bond buying programme.
    The Fed's stimulus programme has pushed money into riskier
assets such as commodities and stoked inflation fears, but signs
of strength in the U.S. economy may prompt the central bank to
slow its $85 billion-a-month buying pace.   
    Gold hit an intraday low around $1,388 an ounce
before rallying to as high as $1,410.51, its highest since May
22, as investors shifted some money back to bullion. It stood at
$1,407.52 by 0714 GMT, up about 1 percent.   
    "I am looking for near term rebounds towards a relatively
short-term pivotal zone of $1,445 to $1,450," said Tim Riddell,
head of ANZ Global Markets Research, Asia. 
    "However, any slippage below $1,397 would be enough to shake
me out of this view."
    Gold has fallen 16 percent this year, hitting a 2-year low
around $1,321 in April on signs of global economic improvement
and amid fears that central banks could start to curtail easy
money policies.
    "This is a very tricky issue. I don't think Fed chairman Ben
Bernanke really wants to start tapering stimulus, but more and
more policymakers are for it," said Joyce Liu, an investment
analyst at Phillip Futures.     
    But strong premiums for gold bars in Asia have indicated
jewellers and retail investors are happy to buy bullion on dips.
In Singapore, supply constraints have sent premiums to all time
highs at $7 to spot London prices. 
   "It seems that every time there's a dip, people will start
coming to the market to buy," Liu said. 
    U.S. gold rose as high as $1,410 an ounce, its
strongest since May 22. 
    For a 24-hour gold chart analysis: 
    Japanese equities led a tumble in Asian shares as the dollar
slipped to fresh lows against the yen on Thursday, with
investors worried about what might happen if the Fed winds back
its massive stimulus programme. 
    Asian gold demand from April to June will reach a quarterly
record as the region's bullion consumers take possession of
supply freed up by selling from exchange-traded funds (ETFs),
the World Gold Council said on Wednesday. 
  Precious metals prices 0714 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1407.52   15.07   +1.08    -15.95
  Spot Silver        22.59    0.11   +0.49    -25.40
  Spot Platinum    1459.24    6.74   +0.46     -4.94
  Spot Palladium    750.47    3.76   +0.50      8.45
  COMEX GOLD JUN3  1406.90   15.60   +1.12    -16.05         6578
  COMEX SILVER JUL3  0.23    0.00   +0.57    -99.25         5654
  Euro/Dollar       1.2961
  Dollar/Yen        100.60
  COMEX gold and silver contracts show the most active months

 (Editing by Tom Hogue)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below