Gold price rises on weaker dollar after three-day fall

Gold rose for the first time in four sessions on Tuesday,aided by a softer dollar.

Written by Reuters | Singapore | Published: May 14, 2013 9:02:22 am

Gold price rose for the first time in four sessions on Tuesday,aided by a softer dollar,although persistent outflows from exchange-traded funds reflected investors’ waning interest in the safe-haven precious metal.

Gold price has recovered about $120 since a sell-off in April dragged prices to two-year lows,but it is still well below last month’s peak of around $1,600 as gains in stocks markets lure investors into equities.

Gold hit a session high of $1,444.96 an ounce and stood at $1,442.54,up 0.9 percent,at 0139 GMT. It fell more than 1 percent to a session low around $1,425 on Monday,near a two-week low hit on Friday,as stronger U.S. retail sales data reduced its draw as a safe-haven.

“Stocks are currently looking more attractive for investors. Gold will continue in the downward trend. It might test $1,400,” said Brian Lan,managing director of GoldSilver Central Pte Ltd in Singapore.

“I don’t see any data that could possibly push gold prices up,” he said.

US gold futures for June delivery were at $1,441.70 an ounce,up 0.5 percent.

The Nikkei share average extended gains into a third day on Tuesday as the weak-yen trend continued to lift exporters. The U.S. dollar ticked lower against other currencies,pausing for breath after recent rallies.

A surprise rise in U.S. retail sales in April supported views that the U.S. economy remains resilient. The data supported the dollar’s recent strength,and Goldman Sachs and JPMorgan upgraded their view on second-quarter U.S. growth.

Holdings at SPDR Gold Trust,the world’s largest gold-backed exchange-traded fund,stood at 33.811 million ounces,just off their lowest level since March 2009.

India’s gold and silver imports jumped 138 percent in April as customers took advantage of lower prices,increasing pressure on the current account balance in the world’s top bullion importer.

For all the latest News Archive News, download Indian Express App