PRECIOUS-Gold rises after sliding early to five-month low
* Open interest in US gold futures up after Monday's drop * Asian physical buying lags despite price decline * Sentiment among private investors dip in Nov -survey * Coming up: US international trade, new home sales Thurs (Adds BullionVault survey, updates market activity) By Frank Tang and Jan Harvey NEW YORK/LONDON, Dec 3 (Reuters) - Gold rose slightly on Tuesday, off an earlier five-month low on a crude oil rally and weaker dollar, and as the previous session's sharp decline triggered bargain hunting. Traders said short-covering was seen a day after gold tumbled almost 3 percent for its biggest daily decline in more than two months. They also noted that as prices tumbled on Monday, open interest in U.S. gold futures climbed more than 1 percent, a sign that new short positions were created. "Despite a small short-covering rally today, gold is susceptible to further pullbacks. Right now a stronger crude market and lower dollar are the only things that keep gold higher," said Frank McGhee, head precious metals dealer at Chicago commodities brokerage Alliance Financial LLC. Spot gold was up 0.2 percent at $1,221.64 an ounce by 3:27 p.m. EST (2027 GMT). The session low was $1,215.60 an ounce, the lowest since July 8. U.S. Comex gold futures for February delivery settled down $1.10 to $1,220.80 an ounce, with trading volume about 35 percent below its 30-day average, preliminary Reuters data showed. RETAIL BUYING WEAK A survey by online precious metals market BullionVault said that physical gold buying among private investors fell in November. The gauge, which measures the balance of customers adding to their gold holdings over those reducing them, fell to 54 in November from October's six-month high at 54.3. A reading of 50 signals an equal number of net gold buyers and sellers. Dealers said bullion buying from Asian consumers, the world's biggest market for physical gold, increased after the sharp overnight drop in prices. However, many remained on the sidelines hoping for even lower prices. Philip Klapwijk, managing director of Hong Kong-based metals consultancy Precious Metals Insights, told the Reuters Global Gold Forum that a build-up in gold inventory among Chinese banks are curtailing demand. Among other precious metals, silver was down 0.3 percent at $19.07 an ounce. Platinum rose 1.1 percent to $1,352.25 an ounce, and palladium climbed 0.4 percent to $711.97 an ounce. 3:27 PM EST LAST/ NET PCT LOW HIGH CURRENT SETTLE CHNG CHNG VOL US Gold FEB 1220.80 -1.10 -0.1 1214.60 1225.80 107,701 US Silver MAR 19.065 -0.224 -1.2 18.975 19.335 34,311 US Plat JAN 1355.80 9.00 0.7 1341.10 1359.20 9,016 US Pall MAR 714.80 1.40 0.2 709.60 716.35 2,452 Gold 1221.64 1.98 0.2 1215.60 1226.00 Silver 19.070 -0.060 -0.3 18.990 19.330 Platinum 1352.25 14.50 1.1 1344.50 1357.50 Palladium 711.97 3.00 0.4 712.00 712.75 TOTAL MARKET VOLUME 30-D ATM VOLATILITY CURRENT 30D AVG 250D AVG CURRENT CHG US Gold 114,886 175,443 187,943 20.12 -0.08 US Silver 39,128 60,117 57,552 28.38 3.34 US Platinum 10,588 9,465 12,889 16.37 0.80 US Palladium 2,681 8,346 5,959 20.76 0.00 (Additional reporting by A. Ananthalakshmi in Singapore; Editing by Marguerita Choy)
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.