Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold prices gain in Asia on physical demand from India

Published 09/07/2014, 07:27 PM
Updated 09/07/2014, 07:29 PM
Gold prices up in Asia

Gold prices up in Asia

Investing.com - Gold prices gain in Asia on Monday, underpinned by physical demand ahead of the main gold buying season in India.

On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,268.80 a troy ounce, up 0.12%, after gaining 0.06% to settle at $1,267.30 a troy ounce by close of trade on Friday.

The Indian festival of lights, Diwali, lies ahead as well as a traditional time for wedding celebrations with gold a common gift on both occasions.

Last week, gold futures bounced off a 12-week low to end mildly higher as investors returned to the market following the release of weaker than expected U.S. non-farm payrolls data for August.

In a report, the Department of Labor said that the U.S. economy added 142,000 jobs in August, the lowest amount in eight months and less than the expected increase of 225,000.

The report also showed that the U.S. unemployment rate ticked down to 6.1% last month from 6.2%, but that was mostly due to more people dropping out of the labor force.

The weaker-than-expected jobs report was taken as a sign that the Federal Reserve will not begin raising interest rates anytime soon.

Gold costs money to store and struggles to compete yield-bearing assets when interest rates are on the rise.

Despite Friday's modest gains, Comex gold prices lost 1.56%, or $20.10, on the week, as the U.S. dollar rose to a 13-month peak against a basket of currencies.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

A recent batch of upbeat data underlined optimism over the strength of the U.S. economy and fuelled expectations that the Fed will begin to raise rates sooner than previously thought.

While the U.S. economy continues to gain steam, Fed Chair Janet Yellen has expressed concern over slackness persistent in the labor market.

In the week ahead, investors will be looking ahead to Friday’s U.S. data on retail sales and consumer sentiment for further indications on the strength of the economic recovery and the possible future path of monetary policy.

Also on the Comex, silver for December delivery rose 0.28% to $19.210 a troy ounce. Elsewhere in metals trading, copper for December delivery climbed 0.21% to $3.177 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.