Articles
-
Gold Bounces From 1-Week Low on Korea Tensions
by cnbc.com
Gold bounced on Thursday from its weakest level in almost a week as rising tension on the Korean peninsula stirred some safe-haven buying in Asia, though gains are likely to be capped by uncertainty over the Federal Reserve’s stimulus program.
Heavy outflows from gold exchange-traded funds also weighed on the metal, in addition to rallies in stock markets and Cyprus’ plan to sell excess bullion reserves to help finance its part of its bailout.
Gold hit its lowest since April 5 at $1,553.10 an ounce before rebounding to $1,560.41 by 0606 GMT, up $2.27. Bullion declined more than 1 percent on Wednesday in its biggest one-day fall since Feb. 20.
(Read More: What the Fed Minutes Mean for Gold)
“I guess people are watching the North Korean missiles. There’s some tension here, and somebody is buying gold,” said Yuichi Ikemizu, branch manager for Standard Bank in Tokyo.“But I think the reality is the ETF is selling. Last night, (the outflow) was around 17 tonnes, and that’s a huge amount. I think that has more impact on the market,” said Ikemizu, who pegged support level at last week’s 10-month low around $1,540.
U.S. gold for June delivery was at $1,560.30 an ounce, up $1.50.
South Korea and the United States remained on high alert for any North Korean missile launch as the North turned its attention to celebrating its ruling Kim dynasty and appeared to dial down rhetoric of impending war.
Gold had ignored the tensions earlier this week, but bargain hunters and jewellers resurfaced on Thursday as bullion’s outlook remained patchy on fears the Fed’s bullion-friendly bond buying program could end soon.
Gold had jumped to an 11-month high in October last year after the Fed announced its third round of aggressive economic stimulus, raising fears the central bank’s money-printing to buy assets would stoke inflation.
Read full article
-
Authorized Person for MEX NEPAL
Mob: +977 9856030634 -
Biratnagar Branch Manager
Mob: +977 9852033934 -
Our Clearing Member
-
Our Banking Partners
-
-
-
