Gold rebounds from 1-month low, jewellers set to buy
Gold slipped to its weakest in a month on Monday before bouncing slightly as some investors looked for bargains, although speculators unwinding long positions and worries about the health of the global economy were likely to keep dragging on prices.
Falling equities could force speculators to cash in gold to cover losses and to turn to the safety of the dollar, although the metal could find support at around $1,700 – a level which may spark more buying from jewellery makers ahead of the year-end festive season.
Gold was standing at $1,723.19 at 0238 GMT, up $3.20 from Friday but still down from an 11-month peak of $1,795.69 marked in early October. It hit a low around $1,713 an ounce earlier on Monday.
There is still a chance that we'll see more selling, but just like this morning, it is evident that there's likely to be some good buying if gold gets closer to $1,700. Personally, I think $1,700 will be held, said Yuichi Ikemizu, branch manager for Standard Bank in Tokyo.
In the other metals as well, I think we're coming closer to the bottom of the current range, he said, referring to industrial metals.
U.S. gold for December was steady at $1,724.50 an ounce after falling to its lowest in more than a month in early trade.
Hedge funds and other big speculators have cut their bullish bets on U.S. commodities to the lowest levels since the end of August, with funds mostly bailing out of gold after
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