Gold News

Gold steady in Asia, ready for key US data

Gold has traded in Asia between $620 and $623 today, as the markets wind down for Christmas and traders await US data later on Thursday.

Data on third quarter economic growth, personal consumption and initial jobless claims could all give clues to the direction of Fed interest rates. That might also give clues to the direction of the US Dollar.

"European Central Bank chief Trichet's nod [yesterday] toward higher interest rates in Europe may weigh more heavily on the Dollar as the next ECB meeting draws near," said James Steel at HSBC in a note yesterday. "This may be supportive of gold, we believe."

The gold price in Hong Kong has risen overnight, according to the Bank of China, up $5 to the equivalent of $622 per ounce. In India, the price of gold for February '07 delivery rose to $634 per ounce on Mumbai's Multi Commodity Exchange. And bullion for delivery in December 2007 held steady in Tokyo at $627 an ounce.

"There's some very light physical buying around, a bit of bargain hunting as prices are quite stable," said Peter Tse, chief precious-metals trader at ScotiaMocatta, the bullion arm of Bank of Nova Scotia, in Hong Kong.

"With fund managers looking to balance their accounts [and] do some window dressing before the end of the year," added a dealer in Sydney, "there is the potential for a few wobbles in things like the US Dollar and the oil price."

"That should be reflected in the gold price as well," he said.

But whether gold rises today against the Dollar or not, the long-term outlook remains strong for gold investors. Find out why – click here to keep reading...

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.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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