By - Clara Denina
Category - Sell Scrap Gold
Posted By - http://tinyurl.com/DiamondBuyer01
 |
| Sell Scrap Gold |
The latest euro zone consumer confidence data showed a rise
to -23.9 this month from a December figure of -26.3, suggesting
households can help boost the bloc's economic recovery.
Spot gold fell 0.2 percent to $1,688 an ounce by 1534
GMT. It hit a one-month high of $1,695.76 in the previous
session but failed to retain upward momentum on lower investment
demand and technical resistance.
"We can see rather lacklustre interest for gold right now,
with investors withdrawing some money from the gold market (as
the global economy shows signs of improvement)," Tobias Merath,
global head of commodity research at Credit Suisse said.
"At the moment there is also a bit of portfolio effect going
on as gold's returns in 2012 moderated to 7 percent from 18
percent in the previous ten years and were than returns in
equities," he added.
"This implies that investors are trimming their positions in
gold to adjust their portfolios, preventing the metal from
breaking above the key $1,700 level."
The SPDR Gold Trust, the world's top gold ETF, has
seen an outflow of nearly 15 tonnes so far this year.
Recent monetary easing in Japan had triggered rallies in
equities, which gold has tracked closely in the past days.
Accomodative policies are usually seen as positive for gold, as
rampant cash printing would prompt currency debasement.
"We continue to see a lot of monetary easing from the Bank
of Japan and other central banks, and we think ultimately this
will pick up gold sentiment once again," said Standard Bank
analyst Walter de Wet.
But gold stalled below $1,700 an ounce in early January and
has struggled to break through key resistance at the 55-day
simple moving average of $1,695.50, which has capped prices for
the last five sessions, frustrating buyers.
"You have the high from January 2 which is $1,695, you have
the 55-day simple moving average which has capped it for the
last five days at 1695.50," Axel Rudolph, a technical analyst at
Commerzbank, said.
"That whole band basically just seems to cap gold. Although
it's trying to go higher, it's failed every single time around
here," he said.
INDIAN BUYING SLACKENS
Demand in the physical gold market remained strong in the
south-east Asian region, but buying by major consumer India was
expected to pause in the next few days while the government
provides details on tax changes this week, analysts said.
The Indian government lifted the import duty on refined
gold to 6 percent from 4 percent and more than doubled the
import duty on gold dore bars and ores.
"The news that India is lifting its import taxes on gold
temporarily is having a negative impact on sentiment," Standard
Bank's de Wet said.
Spot silver rose to a five-week high of $32.44 an
ounce, extending a seven-day run higher. It was last seen at
$32.18, unchanged from the previous close.
"Silver has outperformed gold year-to-date and its market's
supply surplus is being taken up by investors, who tend to buy
the metal when risk appetite is on the rise," Merath said.
"We expect further upside for the metal in the short term,"
he added.
A robust inflow into silver-backed exchange-traded funds has
helped spot silver prices rally more than 6 percent so far this
year, as the metal's exposure to a quickened pace of economic
growth attracted investors.
Holdings of iShares Silver Trust, the world's largest
silver ETF, stood at 10,689 tonnes on Jan. 22, up 604.9 tonnes,
or nearly 6 percent, from the end of 2012.
In other precious metals, spot platinum was down 0.3
percent to $1,688.49, while palladium lost 0.1 percent to
$722.97, staying below last week's multi-month highs, made on
the back of output cuts in South Africa and hopes for an
improvement in demand.
(Additional reporting by Jan Harvey; Edited by Veronica Brown
and Alison Birrane)
No comments:
Post a Comment