Dip in gold price con­tin­ues

The Pak Banker - - FRONT PAGE - DUBAI -AP

Gold prices rose on Wed­nes­day as in­vestors used dips to ac­cu­mu­late the yel­low metal af­ter it dropped more than one per­cent to its low­est in over three weeks in the pre­vi­ous ses­sion.

Spot gold was up 0.3 per­cent to $1,328.86 per ounce,as of 0444 GMT. Prices fell over 1 per­cent to hit its low­est since Jan. 11 at $1,319.96.

Mean­while in Dubai, gold prices are Dh161 for 24-karat and 22-karat can be bought for Dh151.25.

US gold fu­tures for April de­liv­ery rose 0.2 per­cent to $1,331.60 per ounce.

"Some dip-buy­ing is com­ing back ag­gres­sively as the volatil­ity in­dex drops. Also, some good buy­ing as the short­term US (in­ter­est) rate curve is eas­ing off a bit," said Stephen Innes, APAC trad­ing head for OANDA.

"(Prices are) well above ma­jor sup­port and ap­petite is com­ing back, with longer-term traders still hold­ing and steadily buy­ing small clips from this morn­ing Comex open."

Asian share mar­kets were try­ing to find their foot­ing on Wed­nes­day as a sem­blance of calm re­turned to Wall Street where ma­jor in­dices bounced into the black af­ter days of deep losses.

Distressed sell­ing by lever­aged funds seemed to have run its course at the mo­ment, al­low­ing volatil­ity to slightly abate, though the prospect of mon­e­tary tight­en­ing across the globe re­mained a chal­lenge for the long term, an­a­lysts said.

Un­less the mar­ket plunge in­ten­si­fies and dam­ages the econ­omy, US Fed­eral Re­serve pol­i­cy­mak­ers is un­likely to budge from their plan to lift key short-term in­ter­est rates three times this year, some an­a­lysts said.

How­ever, traders di­alled back bets the US cen­tral bank would ratchet up the pace on rate in­creases to be­tween two and three hikes from three to four hikes last week, ac­cord­ing to in­ter­est rates fu­tures.

Mean­while, SPDR Gold Trust, the world's largest gold­backed ex­change-traded fund, said its hold­ings fell 1.44 per­cent to 829.27 tonnes on Tues­day from 841.35 tonnes.

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