The precious metal's rise came after two sessions of declines that stemmed from worries about a surprise interest rate hike on Friday in major bullion consumer India.
Bullion eked out gains even though the dollar rose against the euro. Analysts said gold's inverse relationship with the U.S. currency has weakened for now.
"People are watching the currencies and what is happening with the dollar. It's (Gold) holding, and I think that's what people look to gold for as a place holder ... it's going to hold its value in times of uncertainty," said Tom Hartman, broker with Altavest Worldwide Trading.
Spot gold was at $1,102.20 an ounce at 2:39 p.m. EDT (1839 GMT), up from $1,101.60 late in New York on Monday.
U.S. April gold futures on the COMEX division of the NYMEX settled up $4.20 at $1,103.70 an ounce.
Gold had risen early last week in the face of a rising greenback, boosted by safe-haven buying due to fiscal worries about Greece and uncertainty about currencies.
The euro slipped against the dollar as investors worried European Union policy makers were unlikely to provide a rescue package for Greece at a summit later this week.
But then a U.S. government report showed sales of previously owned homes fell less than expected, and that fueled gains on Wall Street.
"Further strength in the dollar could trigger profit taking in gold," said Richcomm Global Services analyst Pradeep Unni.
"Disappointment that euro zone leaders are unlikely to come up with a rescue package for Greece at this week's summit continues to weigh on the euro."
Gold watchers are awaiting the meeting for the fresh impetus it may give the currency markets, analysts said.
CFTC METALS HEARING IN FOCUS
Precious metals investors will watch a day-long hearing by the top U.S. futures regulator on Thursday to determine whether gold, silver and copper markets need speculative position limits to prevent price manipulation.
The Commodity Futures Trading Commission, which has struggled to gain support for a plan to curb concentration in energy markets, is expected to face even tougher resistance as it considers whether similar provisions are needed for metals.
In the physical sector, gold imports into India, the world's biggest bullion consumer, are seen between 23 and 28 tonnes, against 4.8 tonnes a year ago, the head of Bombay Bullion Association (BBA) said on Tuesday.
Silver prices also tracked gold to recover losses, with spot silver at $16.94 an ounce against $16.93.
**It seems that silver is to stay above the 15$ per ounce level. Do not wait for this price to soar past 20$, if you do, you will miss the current price!
No comments:
Post a Comment