Gold steadies over $330 on dollar, stocks
Tue April 22, 2003 06:10 AM ET
LONDON, April 22 (Reuters) - Gold steadied in European trading on Tuesday, supported by a weak dollar, falling equity markets and the outlook for economic growth.
Spot gold was quoted at $333.25/333/75 an ounce by 0952 GMT, up from $333.20/333.95 an ounce at the New York close on Monday where the metal was driven above the critical $330 level on the back of funds buying.
At one stage the safe-haven metal hit $334 in Asian markets, its firmest level since April 2.
"Direction for the market has swung back towards wider economic drivers as the fall-out from the war in Iraq begins to settle," said James Moore, metals analyst at TheBullionDesk.com.
A soft dollar and losses in equity markets buoyed the metal which was now supported at $330, analysts said.
"Gold has broken out of its recent range, an indication that the recent large selling has ceased, for now at least," said John Reade, metals analyst at UBS Warburg.
The metal faced technical resistance at $335.
"Another day of strength should see the short-term momentum indicators turn bullish and chart watchers will be looking for a test of resistance at $335, with the 100-day moving average pegged at $344.50 moving onto the funds' radar screens," said Standard Bank London in a report.
In other precious metals, platinum was quoted at $634/638 an ounce, down from $639/644 at the New York close on Monday and also below March's 23-year high of $708.00
"The market is supported by early May buying for the expected increase in Chinese jewellery demand during that month, although the growing spectre of SARS might limit this," said Barclays Capital in a report.
"Without this major consumer support there is a possible constraint to the upside in platinum, although we see the market as firmly placed to resist this," it said.
Palladium was quoted at $155/160 an ounce from $154/159 and silver at $4.54/56 an ounce from $4.49/51 in late New York trade.
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