Gold bounces on physical buying, off 7-month low
"It's cheaper to buy at $1,600. We've seen buying from China, and we can say it's from the investment side and the jewellery sector. People in Asia are still buying gold," said a physical dealer in Hong Kong.
"Premiums are still steady at $1.70. There could be some buying from India too," said the dealer, referring to premiums for gold bars against the spot London prices.
The wedding and festival season are underway in India, the world's top gold consumer, with jewellery a key part of celebrations.
In other markets, shares edged higher on Monday, while the yen fell to fresh lows on news a reflationary advocate could head the Bank of Japan next month, lifting yen-based gold contracts on the Tokyo Commodity Exchange.
"We have downgraded our average 2013 gold prices by 6.7 percent to $1,690 an ounce, from an expected slowdown in investment demand for gold in the West and a move towards more growth-oriented assets," said ANZ in a report.
"While we have downgraded our near-term views, gold prices should accelerate in the second half on improving demand from India and China."
Hedge funds and other big speculators cut their bullish bets on U.S. commodities by the most in nearly 10 months just before oil and metals prices tumbled this week on rumours a commodities fund was dumping positions, trade data showed on Friday.
Russia and Turkey both raised
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