Asia's physical market has picked up so far this year, with buyers tempted by last week's big drop in prices -- when prices retreated to as low as $1,626 per ounce -- and on demand ahead of the Lunar New Year.
The final trading session of the week opened with losses across the board in precious metals values. Gold market players continued to show concern about the latest reported dip in global demand for the yellow metal.
This morning, the meltdown continued in gold, but this time, unlike during yesterday’s after-hours electronic trading, silver and the noble metals joined gold and fell hard as well. Once again, the only green color to be seen was the net change in…the greenback.
Spot gold rose to a high of $1,647 per ounce Monday morning in London - 0.8% below last week's peak - while stocks and commodities were broadly flat as markets absorbed Friday's news of cuts to nine Eurozone sovereign credit ratings.
Gold prices traded with muted gains ranging from almost unchanged to roughly seven dollars and with bids coming in mainly around $1,635 to $1,645 in early action after yesterday's rally in part helped by robust Chinese gold import data.
Prices to buy gold touched a two-week high at $1,625 per ounce in London's wholesale market early Thursday, before pulling back to $1,609 as commodities and world stock markets fell, led by Eurozone banking shares.
The carnage in certain commodities continued on Tuesday and some of the price-damaging selling sprees extended into this morning as well. A slightly lower dollar and a 3% recovery in crude oil did not lend assistance to the yellow metal this time.
A day of recovery was apparently in the making in the precious metals markets as the complex opened solidly in the "green" against a pullback in the US dollar and rising optimism that Europe would live to see another day