Gold rebounds from near 6-week low
Singapore, March 26, 2014
Gold bounced on Wednesday from its weakest level since mid-February but signs of a recovery in the US economy and an absence of support from the physical sector could limit gains and keep prices in a tight range.
In a sign of tepid physical demand, premiums for gold bars in Asia were little changed at between 25 cents to $1 an ounce
to the spot London prices this week, partly due to concerns that a weak yuan could hurt demand from main consumer China.
Gold rose 0.2 percent, or $2.11 an ounce, to $1,312.55 by 0329 GMT. It fell to $1,305.59 an ounce on Tuesday, its lowest since Feb 14, before recovering.
"There's some bargain hunting, but there's still sufficient supply and the premiums are not going up," said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore. "(Gold) is still within the trading band, I would say."
Gold has fallen from a six-month high of $1,391.76 hit early last week after US Federal Reserve Chief Janet Yellen suggested interest rates could rise sooner than many had expected, denting bullion's appeal as a hedge against inflation.
US gold, which often influences spot gold, was at $1,313.10 an ounce, up $1.70. - Reuters