* Gold seen rangebound between $1,370-$1,400 through
year-end
* Gold to fall towards $1,350.27 - technicals
[]
* Coming up: ECB President Trichet speaks; 1830 GMT
(Update prices)
By Rujun Shen
SINGAPORE, Dec 13(Reuters) - Spot gold edged higher on
Monday as healthy physical demand helped buoy prices, while
China's move to further tighten its monetary policy and upbeat
U.S. economic data weighed on sentiment.
China raised cash reserve requirements for banks on
Friday, as the country's inflation soared to a 28-month high
in November and put pressure on the government to step up
efforts to curb inflation. [] []
[]
"There's the possibility that China would tighten its
monetary policy further," said Ong Yi Ling, an analyst at
Philip Futures.
"It could affect demand for commodities, and gold could be
caught in a sell-off."
The dollar edged higher against a basket of currencies,
supported by higher Treasury yields after improving U.S. data
late last week.
A rise in U.S. consumer confidence to its highest in six
months and a much bigger-than-expected contraction in the
country's trade deficit pointed to a firmer economic recovery
on Friday. []
Spot gold gained by 0.3 percent to $1,387.25 an
ounce by 0616 GMT, after falling by 2.2 percent last week.
U.S. gold futures edged up 0.2 percent to $1,388.2
an ounce.
Spot gold is biased to fall even though it is
rangebound between $1,371 to $1,395 per ounce, said Wang Tao,
a Reuters market analyst.
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20101312081916.jpg
Robust physical demand in the region helped support
prices, dealers said.
"The physical market is very good. Bullion traders and
some jewellers are buying, as well as some individual
customers who prefer to sell currency and buy gold," said
Peter Fung, head of dealing department at Wing Fung Precious
Metals in Hong Kong.
India and China have both shown strong appetite, due to
seasonal rise in demand, he added.
Investors are eyeing a Federal Reserve meeting on Tuesday
to see whether the proposed $600 billion stimulus plan would
be carried out, or if further stimulus would be considered to
jump-start the economy. []
"If the Fed hints further QE (quantitative easing), it
would provide some bullish support to gold," said Ong of
Philip Futures.
"On the longer term, some investors could be buying on
dips, which also provides support to prices."
Strength in the industrial metals encouraged platinum
group metals.
Spot platinum rose 1.3 percent to $1,686.74 an
ounce, and palladium gained 1.4 percent to $738.22.
Prices of platinum have plenty of scope to build on the 15
percent rise already seen this year, based on their historic
relationship with silver. []
Three-month copper on the London Metal Exchange
hit an all-time high of $9,138.5 a tonne, lifted by strong
Chinese macroeconomic and output data over the weekend and a
positive technical lead from Shanghai copper.
Precious metals prices at 0616 GMT
Metal Last Change Pct chg YTD pctchg Turnover
Spot Gold 1387.25 4.10 +0.30 26.61
Spot Silver 28.86 0.31 +1.09 71.48
Spot Platinum 1686.74 21.64 +1.30 14.98
Spot Palladium 738.72 10.44 +1.43 82.18
TOCOM Gold 3763.00 10.00 +0.27 15.46 44759
TOCOM Platinum 4619.00 44.00 +0.96 5.43 11038
TOCOM Silver 78.50 0.20 +0.26 51.84 1455
TOCOM Palladium 2019.00 -6.00 -0.30 73.30 637
Euro/Dollar 1.3185
Dollar/Yen 84.13
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
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