Gold News

Gold holds above $620 in Asia

Gold has clung onto its Dollar gains from Tuesday so far today, but it's dipped back for Sterling and Euro investors as the US currency weakens.

Short-term, "gold's pretty directionless at the moment," says Mark Pervan, head of research at Daiwa Securities in Melbourne. "People are a little cautious."

"It's likely to be holding somewhere in the region of between $610 and $640 an ounce," adds Craig James, chief economist at Commonwealth Securities in Sydney.

"That's a fairly wide trading range in a short space of time, but gold has been very volatile and has moved very much in line with the greenback, and also with oil prices."

On the currency markets the Euro has leapt versus the Dollar overnight, its biggest jump in 3 weeks. Sterling has gained nearly 3 cents to $1.97 in the last 2 days alone. Japanese investors have also seen gold slip this month as the Dollar has weakened. The US currency slipped again yesterday despite data showing US factory input prices rising at their fastest rate in 32 years.

What next for the almighty Dollar? Today will see Mortgage Application data for the US for the week to Dec.15. But the real data-fest today comes with a slew of monetary statistics in the UK – most notably public borrowing and broad money supply.

The two are inextricably linked, not least for foreign investors using the Pound to hedge their Dollar exposure. To read more now, click here...

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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