Gold rose in afternoon trade in Asian on Wednesday as the dollar weakened against the yen, and dealers expected the US currency to undergo a correction as it factored in prospects for higher US interest rates.
Spot gold was trading at $378.25/379.00 an ounce, compared with $376.80/376.55 last quoted in New York on Tuesday and London's afternoon fix of $375.25. "With a US interest rate hike already priced into the market, the risk is for a correction in the US dollar leading to a higher gold price," N M Rothschild said in a report.
"This should see gold test resistance at $385 later in the week," it said. Higher interest rates would make US bonds more attractive to overseas investors and could push up the dollar.
A strong dollar makes gold less attractive for holders of other currencies.
The dollar was fetching around 112.65 yen, off Tuesday's high around 113.85 touched in New York trade. The euro was at $1.1857, just off the late New York level. In Tokyo gold futures, the benchmark April contract lost 13 yen per gram to 1,372 yen.
Silver was quoted at $5.60/5.63 an ounce, versus $5.51/5.54 in New York. Platinum stood at $783/788 an ounce against 780/785 in New York. Sister metal palladium was trading at $234/239 an ounce, compared with $232.50/238.50 in late US trade.
Comments
Comments are closed.