Gold plunges on European sales
By Wakako Ishibashi, with a contribution from Polly Yam in Hong Kong, Bridge News
(Financial summary table)
By Bridge News
Tokyo--Jly 4--Spot gold prices fell below support of US $323.00 per ounce in late Asian trading on active selling by European dealers, market participants said.
Long liquidation continued in Asia following a sharp price fall in the US after the Reserve Bank of Australia's announcement of gold sales late Thursday. The central bank said it had sold part of its gold reserves to reduce its holdings to 80 tonnes from the previous 247 tonnes. * * *
However, light short-covering and physical buying demand helped stabilize spot gold prices in Asia, the dealers said.
Some Japanese traders were buying spot gold for arbitrage with positions on the Tokyo Commodity Exchange, where futures prices also plunged to close limit-down across the board, the dealers said.
The dealers said spot gold's support is now seen at $318.00, with resistance seen at $328.00.
Gold's weakness also pressured spot silver prices in active trading today, the dealers said. TOCOM silver futures prices also sharply fell on speculators' liquidation, they said.
Meanwhile, spot platinum and palladium prices decreased in quiet Asian trading on profit-taking by Asian traders, the dealers said. Limited TOCOM- related selling was also seen, they said.
TOCOM platinum and palladium futures closed mixed after trading in moderate ranges, despite continued active buying by an overseas refiner of platinum futures, they said.
Asian traders focused on spot gold and silver trading today, leaving platinum and palladium trading quiet, they said.
Industry sources added that shipments of platinum and palladium by Russian export agency Almaz are finally to resume and term shipments for July are now expected to arrive in Japan Thursday on a Japan Airlines flight which leaves Moscow Wednesday. |
