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PRECIOUS-Gold up 1 pct as market hopes for Fed easing
April 9, 2012 / 11:46 AM / 6 years ago

PRECIOUS-Gold up 1 pct as market hopes for Fed easing

* U.S. jobs data supports monetary easing expectations
    * China inflation allows room for stimulus, seen bullish
    * India jewelers call off strike, helps physical buying
    * Coming up: U.S. wholesale inventory and sales Tuesday

 (Updates market activity)	
    By Frank Tang and Jan Harvey	
    NEW YORK/LONDON, April 9 (Reuters) - Gold rose almost 1
percent in thin holiday trade o n M onday, breaking ranks with
other commodities and equities, after disappointing U.S. jobs
data last week revived speculation that the Federal Reserve
might try to stimulate the U.S. economy.	
    The precious metal, which fell more than 2 percent last
week, also received a boost from physical buying out of India
following the end of a jewelers strike.	
    A bigger-than-expected increase in Chinese consumer prices
in March contributed to the buying of gold as an inflation
hedge. 	
    Bullion has dropped 8 percent since the end of February
after a run of strong U.S. economic data convinced many fund
managers that the Fed would not launch another round of
stimulus.	
    However, market watchers said last Friday's data showing
U.S. employers had hired far fewer workers in March than in
previous months could keep the door open for more U.S. stimulus.	
    "In the next few months, the market will not only begin to
price in the Fed's sustained policy but will price in for
further monetary action," said James Dailey, portfolio manager
of the TEAM Asset Strategy Fund. 	
    Spot gold was up 0.9 percent at $1,645.40 an ounce by
2:41 p.m. EST (1841 GMT).	
    U.S. gold futures for June delivery settled up $13.80
an ounce, or 0.85 percent, at $1,643.90. Trading volume was
light, around 40 percent of the 30-day average, preliminary
Reuters data showed, with most European financial markets still
closed for Easter.	
    Gold, which has taken to tracking riskier assets, rose on
Monday despite losses in equities and other commodities led by
crude oil.	
        	
    END OF INDIA JEWELERS' STRIKE HELPS	
    Also lifting gold was decent physical demand from India and
China.	
    Gold jewelers in India, the world's largest consumer of the
yellow metal, replenished stocks after a three-week long strike
and ahead of Akshaya Tritiya, a gold buying festival slated
later in the month. 	
    Silver was down 0.3 percent at $31.62 an ounce	
    Silver imports into India, the biggest consumer of the white
metal, are likely to decline up to 27 percent this year on
expectations of volatile prices, despite import duty remaining
unchanged, the top bullion importer ScotiaMocatta said on
Monday. 	
    Among other precious metals, spot platinum rose 1.1
percent to $1,608.15 an ounce and spot palladium edged up
0.1 percent to $639.03 an ounce.	
    	
 2:41 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT 
               SETTLE   CHNG  CHNG                       VOL 
 US Gold JUN   1643.90  13.80   0.8  1636.70 1649.90   75,227 
 US Silver MAY  31.524 -0.206  -0.6   31.310  32.100   32,868 
 US Plat JUL   1618.20  10.60   0.7  1611.30 1627.00    2,958 
 US Pall JUN    643.80  -1.00  -0.2   640.70  653.00    1,270 
 
 Gold          1645.40  15.18   0.9  1628.80 1648.50         
 Silver         31.620 -0.100  -0.3   31.330  32.050 
 Platinum      1608.15  16.80   1.1  1610.71 1620.24 
 Palladium      639.03   0.83   0.1   644.30  650.50 
 
 TOTAL MARKET              VOLUME          30-D ATM
 VOLATILITY
               CURRENT   30D AVG  250D AVG   CURRENT     CHG 
 US Gold         87,480   202,725   197,139     18.19    1.09 
 US Silver       46,150    59,651    60,471     27.93   -0.15 
 US Platinum      2,993    10,880     8,412     19.92    0.05 
 US Palladium     1,278     4,582     4,685                  
 
 	
	
 (Additional reporting by Rujun Shen in Singapore; Editing by
Alden Bentley)

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