Asian gold climbs in afternoon, Europe triggers buying Updated Mon 12/3/2001 03:37 EDT
HONG KONG, Dec 3 (Reuters) - Spot gold meandered in a narrow
range with an upward bias on Monday, but physical players were
clearly prepared to wait for lower levels with pre-holiday-demand
picking up slowly, dealers said.
"Not many people want to open positions, especially this
month," said a dealer at Bank of China in Hong Kong.
The market continued to be dominated by funds and other
professionals. Physical buyers were still largely absent, the
dealer said.
The tradition of buying and giving gold presents at Chinese
New Year was not as popular as previously, but it was still
practised in most Chinese communities.
But the dealer refused to speculate on potential or pent-up
demand for gold for the lunar New Year which falls on February
11.
Spot gold <XAU=> was trading at US$275.30/5.80 an ounce at
0630 GMT, up from the Hong Kong open at US$274.70/5.20.
Trading was also quiet on the Tokyo Commodity Exchange
(TOCOM) and little Japan-based arbitrage activity in the spot
market was seen on Thursday as a result, Hung said.
The benchmark TOCOM October 2002 contract was trading one yen
higher at 1,090 yen on moderate trade of moderate trade of 11,770
contracts.
Technically, gold looks caught in a bear trap, ready to
spring higher toward resistance at US$275 or even US$280, before
falling to much lower levels, analysts said.
{idiots}
But "if we see a close below US$272, it will fall back (to)
the support area in June-August at US$265," Maxell Mak, analyst
at Hing Fung Goldsmiths and Refinery said.
{idiot}
The People's Bank of China raised the domestic price of gold
on Monday, fixing it at 71.60 yuan per gramme, up 0.37 percent
from last Monday's fix at 71.33 yuan per gramme.
The yuan price per gramme is equal to US$271.70 per ounce.
The Shanghai Gold Exchange began daily simulated trading
exercises last Wednesday, November 28 and no problems have been
encountered, exchange officials said.
The exchange will be officially opened in early 2002, the
exchange said in a statement issued last week.
Gold Aussie <XAUAUD=R> slipped edged higher to A$528.49/9.96
an ounce, as the Australian dollar <AUD=> inched up to a day high
of US$0.5219, then eased to trade at US$0.5209.
The Australian dollar remains buoyed in part by the takeover
battle between AngloGold Ltd <ANGJ.J> and Newmont Mining <NEM.N>
for Normandy Mining <NDY.AX>.
But the dollar could come under pressure if the Reserve Bank
of Australia, the central bank, cuts interest rates by 0.25
percent on Tuesday. The cut would match the last U.S. Federal
Reserve rate cut.
Hong Kong tael gold <TAEL=>, which is traded on the Chinese
Gold and Silver Exchange, ended the morning session at HK$2,554 a
tael, up from HK$2,553 at the open.
A tael is equal to 1.203 ounces of gold.
Spot silver <XAG=> was indicated at US$4.16/4.19 an ounce,
unchanged from the Hong Kong open.
US$1:HK$7.80
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