Gold bounces on bargain hunting but dollar, oil weigh
Gold rebounded on bargain hunting on Tuesday but held near its lowest in a month, with its appeal as an alternative investment and a hedge against inflation shakened by a firming US dollar and sliding crude oil prices.
Investors were on the sidelines after their confidence was hit by a recent broad-based sell-off in commodities. Gold has lost more than 10% in value since spiking to a lifetime high of $1,030.80 an ounce on March 17. Gold hit a low of $911.50 an ounce before rebounding to $924.50/925.25 as bargain hunters resurfaced after a long Easter holiday, up from $920.90/921.70 in New York, but it was still within sight of last week’s one-month low of $904.65. “If gold were to start heading lower again, say below $900 an ounce, that might create a temporary cycle of further selling,” said David Moore, an analyst at Commonwealth Bank of Australia in Sydney. “As investors’ sentiment turned, gold was then especially vulnerable to that change in sentiment. I think it’s difficult to see which way gold would go in the very short term.” Platinum fell while silver and palladium gained but stayed below recent highs. (Economic Times)
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