Gold holds below $ 1,200 due to firmer dollar, equities
Wednesday, 22 April 2015 00:06
-
- {{hitsCtrl.values.hits}}
Singapore (Reuters): Gold remained below the key $ 1,200 level on Tuesday, adding to overnight losses, as a rally in global equities and a firmer dollar dented the metal’s appeal as a safe haven.
Spot gold was down 0.2% to $ 1,194 an ounce at 0657 GMT after losing 0.7% on Monday.
“Precious markets declined, as market participants pared back safe-haven exposure in gold,” said ANZ analyst Victor Thianpiriya. “Risk appetite improved, with traders moving towards US and European equities.” The dollar edged higher against its peers on Tuesday, drawing support as the euro was pressured by increasing worries that Greece could default on its debt and eventually exit the single currency.
Russia’s gold reserves rose to 39.8 million troy ounces as of 1 April from 38.8 million ounces a month earlier, the Central Bank said on Monday.
Bullion investors were also watching physical demand in top consumer India, which celebrates on Tuesday the Akshaya Tritiya festival, considered one of the most auspicious days to buy gold.
Supply of the yellow metal into India has risen sharply in the build-up to Akshaya Tritiya, although it remains to be seen if consumers will lap up gold products with their usual enthusiasm, after a drop in gold prices.
The price of gold fell for two straight years to 2014 after a 12-year rally.
