Tuesday, 25 February 2014

PRECIOUS METALS TIPS FEBRUARY 25, 2014

GOLD
  • Gold rebounded from intraday lows on Monday, adding to last week's gains, as speculators ditched equities on persistent worries over the pace of the US economic recovery and China's growth. 
  • Investors on Friday had increased bullish bets on bullion after prices broke through tough resistance at $1,300 an ounce, with weak US manufacturing data and uncertainty over China's economic expansion lifting the metal's safe haven appeal.
  • Gold hit a low of $1,318.71 an ounce earlier in the session, but stood at $1,327.00 by 0710 GMT, up $3.99. Last week's rally lifted prices to a 3-1/2 month high at $1,332.10, and gold has gained more than 9 percent so far this year.
  • "I think $1,335 seems to be capped for the time being," said the chief dealer at Lee Cheong Gold Dealers in Hong Kong, referring to the next resistance level.
  • "There are small amounts of buying in the physical side, although selling is also not that much. Premiums haven't changed at all," he said.
  • Political tensions in Thailand have yet to spur safe-haven buying but could affect trading activity. Prime Minister Yingluck Shinawatra has left Bangkok and is staying 150 km (90 miles) away, her office said on Monday, without specifying the location.

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