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22 April 2024

Demand for gold wanes amid selloff

By Agencies

Gold weakened as some investors opted to sell the metal after the biggest advance in three months and the dollar resumed its rise against major currencies.

Gold for immediate delivery fell 0.2 per cent to $1,103.35 an ounce in Singapore, paring Monday's 2.3 per cent gain, the biggest advance since Nov. 3. In Hong Kong, gold closed at $1,103.50-$1,104.50 an ounce, up from Monday's close of $1,083.50-$1,084.50.

"The rally is luring some buyers to lock in gains," said Yu Kyung Kyu, a trader with Eugene Investment & Futures in Seoul. Still, "some are betting on a further rally given that gold's passed the key $1,085 support level."

Bullion, which typically moves inversely to the dollar, declined for a second month in January as the dollar rallied two per cent against the six-currency basket.

The metal reached a record $1,226.56 on December 3.

Gold prices remain vulnerable to further losses after falling 1.6 per cent in January, analysts said, with the dollar's upward trend expected to resume.

Holdings of the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust were unchanged on Friday, but down 21.7 tonnes or 1.9 per cent in January.


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