(Updates prices)
By Lewa Pardomuan
SINGAPORE, April 9 (Reuters) - Gold rose on Wednesday with
the help of bargain hunters, and as investors took another look
at a plan by the International Monetary Fund to sell around 400
tonnes of its gold and reckoned the market could absorb it.
Investors were also looking forward to central bank
meetings later this week, which may offer direction to
currencies and precious metals. Platinum, palladium and silver
rebounded in line with gold's gains.
Gold <XAU=> hit a high of $918.20 an ounce, up from
$913.10/913.90 an ounce late in New York on Tuesday, when it
fell more than 1 percent as speculators booked profits and
reacted to news of the IMF's planned sale.
The IMF is the world's third-largest gold holder after the
United States and Germany, with 3,217.3 tonnes in stock. It
wants to sell 403.3 tonnes and use the profits to invest in
government and corporate bonds, and possibly equities.
"We expect gold prices to slowly edge higher in the coming
days as the dollar continues to weaken and the funds inject
more capital," Investec Australia said in a daily note.
"Technically, having reached $924, we now see the
possibility of a move higher toward the next resistance levels
at $937 and from there to $951 and $952."
Gold struck a record high of $1,030.80 an ounce on March 17
before falling due to a technical correction, a broad
commodities sell-off and weaker crude oil <CLc1>. It hit a
two-month low of $872.90 last week.
Dealers said sales by the IMF, which still need approval by
the U.S. Congress, could be absorbed by investors. Any sales by
the IMF will fall within the existing Central Bank Gold
Agreement, which allows for the sale of 500 tonnes of gold a
year.
The euro hit a low of $1.5683 <EUR=>, down from around
$1.5700 in late New York trade, but later trimmed its losses to
stand at $1.5723.
Interest rate announcements and statements from central
banks this week could give direction to currencies, whose
movements often dictate the direction of gold.
The Bank of Japan is expected to leave rates on hold on
Wednesday, as is the European Central Bank on Thursday, but the
Bank of England could cut its key rate on Thursday.
"There's some short-covering but I guess the market will
get stuck in a range for a while. I am looking at a wide range
of $850 to $950," said a dealer in Hong Kong.
"I don't see much buying from jewellers, but a fall to $900
may attract move buying," he said.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange added $0.5 an ounce to
$918.5 an ounce.
Spot platinum <XPT=> rose to $2,020/2,030 an ounce from
$2,008/2,018 late in New York. The most active Tokyo platinum
futures <0#JPL:> ended the morning session 64 yen per gram
higher at 6,547 yen.
Silver <XAG=> edged up to $17.66/17.71 an ounce from
$17.64/17.69 an ounce. Spot palladium <XPD=> rose to $450/455
an ounce from $449/457 an ounce.
Precious metals prices at 0201 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 914.60 -0.40 -0.04 9.84
Spot Silver 17.66 0.02 +0.11 19.57
Spot Platinum 2020.00 12.00 +0.60 32.89
Spot Palladium 450.00 1.00 +0.22 22.28
TOCOM Gold 3039.00 -7.00 -0.23 -0.69
17257
TOCOM Platinum 6547.00 64.00 +0.99 22.63
10292
TOCOM Silver 588.00 -8.50 -1.42 8.69
751
TOCOM Palladium 1517.00 9.00 +0.60 12.29
770
Euro/Dollar 1.5705
Dollar/Yen 102.47
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by )
