METALS

Gold rose back above $1 650 an ounce yesterday, helped by a recovery in stock markets and a rise in physical demand after a three-session slide in prices, but concerns over the scope of US monetary easing kept a lid on gains.

Gold was fixed at $1 655.90 an ounce (R456 338 a kilogram) in the afternoon in London, up $10.75 on Monday’s second fix. US gold for December delivery was up $9.70 at $1 656. Trade kept to a narrow range on uncertainty over US monetary policy.

Barclays Capital puts support for spot gold at $1 640 and resistance at $1 665.

Deutsche Bank analyst Daniel Brebner said: “It looks like we are in a period, whether sustainable or not, of some [economic] stability, and this is resulting in the moribund performance of the gold price.

“That potentially could continue over the next quarter or two. But we’re not out of the woods yet and there is still much that the world economy needs in terms of support from monetary policy.” – Reuters