Gold remains strong amid recovery signs

US service industries probably expanded in March at the fastest pace since 2007. (AFP)

Gold gained as signs that the global economic recovery is quickening buoyed demand for commodities and stocks. Gold for immediate delivery rose 0.6 per cent to $1,126.65 an ounce in Singapore. Futures for June delivery in New York were little changed at $1,127.10 an ounce.

"Speculative buying is continuing on bets that the economic recovery is gathering pace," said Paul Yamamura, Tokyo-based precious metals trader with Sumitomo. "The market is bullish at the moment."

US service industries probably expanded in March at the fastest pace since 2007, economists said. Manufacturing in China grew for a 13th month and US factories expanded the most since July 2004, reports showed last week. Business sentiment in Japan rose to the highest since 2008, while factories in Britain and the euro region stepped up production.

Dealers awaited the release of an ISM survey on the US services sector for March and a policy meeting by the Reserve Bank of Australia expected to raise rates by 25 basis points to 4.25 per cent.

"We are likely to see a further strengthening of the dollar ahead," said Wong Eng Soon, an investment analyst at Phillip Futures in Singapore.

 

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