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Gold nudges $900 per ounce in Asia
on Bernanke rate-cut hint

By Chris Oliver
Last update: 10:34 p.m. EST Jan. 10, 2008Print RSS Disable Live Quotes

HONG KONG (MarketWatch) -- Gold futures nudged the $900 per ounce level for the first time in electronic trading in Asia early Friday, extending gains after rallying nearly $12 per ounce in New York after comments by Federal Reserve Chairman Ben Bernanke were widely interpreted as a signal further interest-rate cuts were on the way. February gold futures traded as high as $899.90 per ounce, before easing back. The front month bullion contract was quoted at $891.4 per ounce at midday in Tokyo, down $2.2 from its close of $893.60 on the New York Mercantile Exchange. Apart from a sudden jump and pull back in early Australian trading, the metal was trading within a $3 to $4 per ounce range, traders said. "It is likely to continue going higher overall in the bigger picture perspective as the Federal Reserve is likely to continue slashing interest rates with the market now expecting 50 basis points," said Sue Trinh, a senior currency strategist with RBC Capital Markets in Sydney.