Gold - Headed to $416?......................
Reuters
UPDATE - Gold pushes higher in Asia, eyes $416/oz
Monday February 9, 11:56 pm ET
(Updates to afternoon)
SINGAPORE, Feb 10 (Reuters) - Gold climbed in Asia on
Tuesday afternoon as it looked set to puncture a key resistance
of $416 an ounce this week, after a Group of Seven (G7) meeting
failed to come up with any agreement to stem the dollar's fall.
"The fortunes of gold are still firmly tied to those of the
U.S. dollar with any renewed weakness in the greenback likely
to push gold higher," N M Rothschild said in a report.
At 0417 GMT, spot gold (XAU=) was traded at $407.50/408.25
an ounce compared with $406.25/407.00 last quoted in New York
and London's Monday afternoon fix of $405.95.
The dollar was at 105.57 yen (JPY=) against late New York
levels around 105.70 yen and the euro (EUR=) was at $1.2739
versus $1.2692.
Gold, used as jewellery in Asia, has closely followed
movements of the dollar against other currencies, touching a
15-year peak at $430.50 an ounce on January 6 when the dollar
fell to a lifetime low against the euro.
"We had a good decline from around $431 to $394. So I think
for the time being, the bearish sentiment should be over," said
one precious metals analyst in Sydney.
"At the moment, we are on our way to $416 but we need a
pullback to $401 first. Today's upside will be $409," said the
analyst who pegged key support at $401 and $394 an ounce.
Tokyo gold futures gained despite a steadier yen as local
dealers took cue from a rebound in New York.
COMEX gold futures closed on a more secure footing above
$400 an ounce on Monday, boosted by views in the market that a
struggling dollar should continue to support the precious
metal.
The recent slump in the greenback has made
dollar-denominated gold more affordable for holders of other
currencies.
The benchmark December 2004 gold contract (JAUZ4) on the
Tokyo gold futures rose eight yen per gram to 1,384 yen.
Palladium (XPD=) was quoted at $236/241 an ounce, silver
(XAG=) at $6.42/6.44 and platinum (XPT=) at $836/841.
