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Gold prices edges up on bargain hunting,near 7-week low

Gold nudged up on Wednesday as bargain hunters and buyers from top consumer India reappeared after prices dropped to their lowest in more than a month.

Written by Agencies | Singapore | Published: October 24, 2012 9:37 am

Gold nudged up on Wednesday as bargain hunters and buyers from top consumer India reappeared after prices dropped to their lowest in more than a month,but a strong U.S. dollar could cap gains as worries about the global economy persist.

FUNDAMENTALS

* Gold added $3.11 to $1,711.20 an ounce by 0008 GMT after hitting a low around $1,703 on Tuesday,its weakest since September 7,as equities tumbled. Silver,platinum and palladium also bounced from lows.

* U.S. gold for December rose $3 to $1,712.40 an ounce.

* Investors are awaiting the release of HSBC’s latest report on China’s manufacturing sector due around 0145 GMT. Any downside surprise could further rattle the market,but signs that China’s slowdown has stabilised could see a return of risk appetite.

* The U.S. Federal Reserve will issue its policy statement at the end of a two-day meeting,but most economists expect no new policy initiatives from the central bank after it embarked on a third round of major bond purchases at their meeting just last month.

* Gold demand in India,the world’s biggest buyer of the precious metal,remained robust for a second straight day on Tuesday as prices dropped to their lowest in a week,enticing buyers ahead of the peak festive season.

* For the top stories on metals and other news,click ,or

MARKET NEWS

* The euro and Australian dollar wallowed at one-week lows on Wednesday,having suffered a setback overnight after disappointing earnings from U.S. firms fuelled risk aversion.

* Japan’s Nikkei share average dropped at Wednesday’s open after poor U.S. earnings increased uneasiness about the outlook for local companies,and looked set to break its seven-day winning streak despite hopes for a policy easing by the Bank of Japan.

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