Golden Investment Research (P) Limited
Gold edges up; euro zone concerns remain(10.04)
SINGAPORE: Gold prices edged higher on Tuesday after two straight sessions of losses, supported by a steady euro ahead of key bond auctions in the euro zone this week while sentiment remained fickle over the region's fiscal prospects.
Spot gold has been moving in a tight range of less than $20 above $1,600 for three days after the new year euphoria quickly faded and worries about the euro zone debt crisis resurfaced.
"The sentiment is neutral in the market," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. "People are waiting on the side waiting for developments out of the euro zone."
After Germany and France struck a gloomy tone on Greece, market participants are eyeing bond auctions by Italy and Spain later this week, seen as a test on the willingness of investors to plough more money into the debt-laden euro zone nations.
The single currency held steady and Asian shares gained, while worries about the euro zone debt crisis kept investors cautious about taking riskier positions.
Spot gold edged up 0.3 percent to $1,615.09 an ounce by 0300 GMT, after dropping for two sessions straight.
U.S. gold gained half a percent to $1,616.50. Technical analysis suggested that spot gold is trapped between $1,604 and $1,623 an ounce during the day, said Reuters market analyst Wang Tao.
The annual rebalancing of commodity indices, including DJ-UBS and S&P GSCIhttp://www.goldennifty.com/, was slated to take place this week and could put some pressure on gold, one of the outperformers of the commodity complex in 2011, goldennifty analysts said.
Spot gold has been moving in a tight range of less than $20 above $1,600 for three days after the new year euphoria quickly faded and worries about the euro zone debt crisis resurfaced.
"The sentiment is neutral in the market," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. "People are waiting on the side waiting for developments out of the euro zone."
After Germany and France struck a gloomy tone on Greece, market participants are eyeing bond auctions by Italy and Spain later this week, seen as a test on the willingness of investors to plough more money into the debt-laden euro zone nations.
The single currency held steady and Asian shares gained, while worries about the euro zone debt crisis kept investors cautious about taking riskier positions.
Spot gold edged up 0.3 percent to $1,615.09 an ounce by 0300 GMT, after dropping for two sessions straight.
U.S. gold gained half a percent to $1,616.50. Technical analysis suggested that spot gold is trapped between $1,604 and $1,623 an ounce during the day, said Reuters market analyst Wang Tao.
The annual rebalancing of commodity indices, including DJ-UBS and S&P GSCIhttp://www.goldennifty.com/, was slated to take place this week and could put some pressure on gold, one of the outperformers of the commodity complex in 2011, goldennifty analysts said.
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