Gold bounced from a
5-week low on Friday as weaker prices ignited buying by bargain hunters
and jewelers across Asia, but investors were cautious ahead of a U.S.
nvestors shrugged off a small drop in ETF
holdings, turning their attention to the June non-farm payrolls data
that will set the tone for currencies and equities. Gold tumbled nearly 4
percent on Thursday, the biggest one-day fall in five months, as funds
sold bullion to cover losses in other markets.
gold hit a low of $1,196.00, its weakest since May 25, before
rebounding to $1,207.35 per ounce by 0608 GMT, up $8.70 from New York's
notional close as the Nikkei edged up and the euro gained. Gold struck a
record $1,264 last week.
we start to see the ETF holdings reduced markedly, then I would expect
we'll have a bit of a rebound in the next few days," said Darren
Heathcote, head of trading at Investec Australia in Sydney.
"If it starts to show significant falls,
then it shows investment demand is actually starting to wane and we
might be a little bit more concerned about further weakness, but at the
moment I would say No."
largest gold-backed exchange-traded fund, SPDR Gold Trust (GLD.P)
said its holdings dropped to 1,319.219 tonnes by July 1 from a record
of 1,320.436 tonnes on June 29 -- the first decline since early June.
U.S. gold futures for August delivery added
$1 to $1,207.7 an ounce.
from retail investors pushed up premiums for gold bars in Tokyo to $1
an ounce to the spot London prices from zero earlier this week. That was
the highest level since July last year.
have seen some buying interest in gold and silver from various sectors
including the general public. Premiums rise to $1 because of strong
buying interest," said a physical dealer in Tokyo.
Dealers in Singapore noted bargain hunting
as well as a surge in physical demand from Thailand,
keeping premiums steady at 40 to 60 U.S. cents
Light buying from jewelers stirred up
physical trading in Hong Kong, where premiums were also steady at 50
cents, but there was a lack of interest from investors.
"I think gold will fall if the job data is
bad. It will be the same story," said a dealer in Hong Kong, referring
to a possible decline in bullion as investors cover losses.
"I think people are reluctant to commit too
much at the high level. We really have to see if there will be more
physical buyers and jewelers at these levels."
ended higher ahead of the U.S. job data but worries about a double-dip
recession lingered as investors moved away from the euro-zone debt
concerns to U.S. data pointing to a slowing recovery. .T .N
The labor department releases its June
employment report at 1230 GMT. Economists are forecasting a loss of
110,000 jobs in June compared with an increase of 431,00 jobs in May.
The dollar was on the back foot against
the euro and slipped against the Aussie on Friday after a big euro short
squeeze ahead of the jobs data, while the yen lost ground all round as
the squeeze spilled into Asian trade.