SINGAPORE - Gold dropped more than 1 percent on Monday, losing some of its safe-haven appeal as the U.S. dollar strengthened against other currencies, but a steadier oil limited the falls.
Bullion could find support around $800 an ounce, with the help of buying from jewelers ahead of the festive seasons especially in main consumer, India. Dealers also reported tight supply for gold bars in Singapore and Hong Kong.
Gold slipped to $821.90/822.90 an ounce from $827.00/828.60 an ounce late in New York on Friday, but was off nine-month lows of around $773 hit in mid-August.
Earlier on Monday, the metal dipped to $817.05, down 1.2 percent.
"Gold remains relatively resilient against oil's volatile downward move. This may suggest that buying interest is surfacing just above $800," said William Kwan, bullion director at Gold Capital Management in Singapore.
Oil was steady above $115 a barrel, having fallen 5.4 percent on Friday, the biggest one-day drop in percentage terms since December 27, 2004, on easing supply concerns, but tensions between the United States and Russia would lend support.
Demand for gold in India normally picks up ahead of Diwali, the Hindu festival of lights in October, as people buy gold for auspicious reasons. Also, many Hindu marriages are likely to be held between September and November, said dealers.
"I guess the $800-psychological level support will come into play again. I believe physical demand for gold is likely to remain good and perhaps the shortage may support the market a bit," said Adrian Koh, analyst at Phillip Futures in Singapore."If we start moving below $810, we will probably move to $800 very soon and perhaps gold could retest to the $770s again," he said.
New York gold futures lost $7.0 an ounce to $826.50.
The dollar hit a two-year high against sterling after data last week showed Britain's economy was stalling, raising the prospect for monetary easing by the Bank of England.
Spot platinum dropped to $1,402.00/1,422.00 an ounce from $1,425.50/1,445.50 an ounce late in New York but was off an 11-month low around $1,296 hit last week.
"Near-term support for platinum should come in around the $1,350-level, and if we do move below those levels, we could see another bout of selling towards $1,250 to $1,300," said Koh of Phillip Futures.
In industry news, South Africa's Northam Platinum (NHMJ.J: Quote, Profile, Research, Stock Buzz) posted a 12 percent rise in earnings for the year ending in June, on high metal prices, despite weaker output. The miner forecast a rise in output and prices for the current financial year.
Spot palladium was steady from late New York levels at $285.50/293.50 an ounce. Silver fell to $13.31/13.36 an ounce from $13.33/13.41 an ounce late in New York.
No comments:
Post a Comment