Gold poised for third day of gains; platinum at 30-mth high
SINGAPORE: Spot gold was on course for a third consecutive day of gains on Wednesday, supported by dollar weakness and physical buying, while platinum hit a 30-month high, buoyed by an improved economic outlook.
The euro currency rose to a one-month high against the dollar on Tuesday, after strong data out of Germany, the euro zone's leading economy, lifted the economic outlook for the region.
The dollar's index against a basket of major currencies fell to a two-month low on Wednesday, as continued short-covering in the euro led to a broad fall in the dollar .
"It looks like gold is following the euro, which had a relatively strong run overnight," said Darren Heathcote, head of trading at Investec Australia, adding that the dollar weakness was expected to continue supporting gold prices .
Active buying in Asia continued to buoy market sentiment, and gold is likely to trade in the range between $1,370 and $1,378 with a possibility of breaching the upside, he said.
Spot gold rose by half a percent to $1,374.30 an ounce by 0715 GMT, gearing for its third straight day of gains.
U.S. gold futures gained 0.4 percent to $1,374.2. Spot gold is expected to end its current minor rebound by briefly touching a trendline resistance at $1,378 per ounce, as the major trend is still down, said Wang Tao, a Reuters market analyst.
PLATINUM AT 30-MONTH HIGH
Spot platinum rose to $1,844 an ounce, its highest since July 2008, before easing to $1,840.74.
Upbeat economic data from the U.S. and Europe in recent weeks suggests the global economy has gained a steadier footing, boding well for industrial metals as well as precious metals with industrial! uses, i ncluding silver, platinum and palladium.
Three-month copper on the London Metal Exchange hit a record high of $9,774.75 a tonne.
Platinum is expected to surge to $1,950 per ounce over the next few weeks, should it stand firm above a pivotal resistance at $1,850, as the uptrend is steady and the bullish momentum has not dissipated. Retracement from the current level will be limited to $1,780, said Wang Tao.
"PGM (platinum group metals) are well-bid today, lending support to gold," said a Singapore-based trader.
Asian stocks to their highest since May 2008, led by sectors most sensitive to the economic growth cycle ahead of U.S. earnings.
The euro currency rose to a one-month high against the dollar on Tuesday, after strong data out of Germany, the euro zone's leading economy, lifted the economic outlook for the region.
The dollar's index against a basket of major currencies fell to a two-month low on Wednesday, as continued short-covering in the euro led to a broad fall in the dollar .
"It looks like gold is following the euro, which had a relatively strong run overnight," said Darren Heathcote, head of trading at Investec Australia, adding that the dollar weakness was expected to continue supporting gold prices .
Active buying in Asia continued to buoy market sentiment, and gold is likely to trade in the range between $1,370 and $1,378 with a possibility of breaching the upside, he said.
Spot gold rose by half a percent to $1,374.30 an ounce by 0715 GMT, gearing for its third straight day of gains.
U.S. gold futures gained 0.4 percent to $1,374.2. Spot gold is expected to end its current minor rebound by briefly touching a trendline resistance at $1,378 per ounce, as the major trend is still down, said Wang Tao, a Reuters market analyst.
PLATINUM AT 30-MONTH HIGH
Spot platinum rose to $1,844 an ounce, its highest since July 2008, before easing to $1,840.74.
Upbeat economic data from the U.S. and Europe in recent weeks suggests the global economy has gained a steadier footing, boding well for industrial metals as well as precious metals with industrial! uses, i ncluding silver, platinum and palladium.
Three-month copper on the London Metal Exchange hit a record high of $9,774.75 a tonne.
Platinum is expected to surge to $1,950 per ounce over the next few weeks, should it stand firm above a pivotal resistance at $1,850, as the uptrend is steady and the bullish momentum has not dissipated. Retracement from the current level will be limited to $1,780, said Wang Tao.
"PGM (platinum group metals) are well-bid today, lending support to gold," said a Singapore-based trader.
Asian stocks to their highest since May 2008, led by sectors most sensitive to the economic growth cycle ahead of U.S. earnings.
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