SINGAPORE: Gold edged higher on Friday despite a rebound in stocks, underscoring support for the safe-haven asset from bullish technicals and money flows into exchange traded funds.
Spot gold gained 0.3 percent to $1,237.30 an ounce by 0744 GMT.
Bullion was up only modestly for the week, that would mark its fifth weekly gain in six.
Gold prices are inversely tracking moves in the equity markets. Their 16.6-percent rally this year has been fuelled by safe-haven bids as equities tumbled on lower oil prices and fears of an economic slowdown. The metal hit a one-year top of $1,260.60 two weeks ago.
“The general economic situation is giving support to the gold market. I won’t be surprised if we make new highs,” said a bullion trader in Hong Kong.
“There does look to be good money going into ETFs, and their correlation with the price is really strong.”
Assets of SPDR Gold Trust, the top bullion ETF, rose to their highest since March 2015 on Wednesday.—Reuters
Gold rises in NY
NEW YORK: Spot gold rose on Thursday, buoyed by a strong technical formation and the potential for a bullish “golden cross” to form, while the futures market pared losses after feeling earlier pressure from the strong equity markets.
Spot gold was up 0.6 percent at $1,235.70 an ounce at 3:13 p.m. EST (2013 GMT), heading for a third straight day of gains but remaining below the one-year high of $1,260.60 reached on Feb. 11.
US gold futures most-active April contract settled down 30 cents at $1,238.80 per ounce. The discrepancy in price direction between the bullion markets was due to Wednesday’s late-day weakness in the spot market.
“Gold is still holding above that pennant formation. It’s muted as a result of strength in equities,” said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, referring to gold futures.
A daily chart shows technical buy signals after the markets broke and held above a bullish pennant formation, Tesfaye said.
Spot gold could gain more because it is on the cusp of a key technical level known as the “golden cross”, when the 50-day moving average surpasses the 200-day moving average, analysts said. The gap was less than 50 cents on Thursday.
Among other precious metals, spot silver eased 0.7 percent to $15.14 an ounce, platinum dipped 1.3 percent to $925.50 and palladium fell 0.3 percent to $483.65.—Reuters
