PRECIOUS-Gold rises after sliding early to five-month low

Tue Dec 3, 2013 4:03pm EST

Related Topics

* 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)
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