Gold bounces off 6-month low, jewellers buy
Gold rebounded from a six-month low on Monday as bargain hunters resurfaced and jewellers in China returned to the physical market after the Lunar New Year holiday, but a firm U.S. dollar was likely to limit the upside.
Gold has been under pressure from technical selling and gains in the U.S. currency after the euro slipped from a 15-month high struck in early February on renewed worries about the health of the euro zone economy.
Gold rose $5.18 an ounce to $1,614.24 by 0333 GMT after falling to around $1,598 on Friday, its weakest since August. Friday's loss marked bullion's biggest one-day drop since December.
In Hong Kong, premiums for gold bars rose to as high as $1.70 an ounce to the spot London prices from $1.50 last week, reflecting a surge in buying interest from jewellers, said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. But he doubted whether the buying interest would last.
"The strong dollar is the major point. Sentiment is not bullish for the time being, even though we see there's tension in North Korea," said Leung, referring to a lack of safe-haven buying normally associated with geopolitical tensions.
North Korea has told its key ally, China, that it is prepared to stage one or even two more nuclear tests this year in an effort to force the United States into diplomatic talks with Pyongyang, said a source with direct knowledge of the message.
Leung saw support for
Be the first to comment.
