Gold & Silver

Gold edges up as support below $1,100/oz disappoints bears

Agencies | | Updated on: Dec 06, 2021

Brent oil, copper rise on China imports data

Gold extended a recovery from recent lows on Monday as its resilience below $1,100 disappointed those expecting a deeper decline, but expectations that US interest rates could rise as early as September kept up pressure on prices.

The metal has fallen in the second half of this year on the prospect of rising rates, which would lift the opportunity cost of holding bullion while boosting the dollar.

Spot gold was up 0.3 per cent at $1,095.41 an ounce , while US gold futures for December delivery were up 40 cents an ounce at $1,094.50.

“We are seeing a few disillusioned shorts scaling back,” Saxo Bank's head of commodity research Ole Hansen said. “We have been range bound since the collapse on July 20, with many recently established short positions not performing at these levels.”

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, slipped to their lowest since September 2008 at 21.47 million ounces on Friday.

Spot platinum was at $968.50 and palladium was at $597.50 . Silver was at $14.87 . Copper pared losses after touching six-year lows on Monday after stronger-than-expected imports of the metal from top consumer China offset a faltering picture for the economy as a whole.

Three-month copper on the London Metal Exchange rebounded from a six-year low of $5,118 a tonne. LME aluminium to $1,586.50 a tonne while nickel rose to $10,995 . Zinc was at $1,870 , lead was at $1,720 and tin slid to $15,100.

Oil advanced from the lowest closing level in six months in London as China imported recorded volumes of crude and some OPEC members discussed the possibility of an emergency meeting.

Brent for September settlement gained 67 cents to $49.28 a barrel on the ICE Futures Europe exchange. West Texas Intermediate for September delivery rose to $44.20 a barrel on the New York Mercantile Exchange. The European benchmark crude traded at a premium of $5.09 to WTI.

Bullion prices (in ₹)

Mumbai: Silver spot 34,840/kg; standard gold 24,825/10 gm; pure gold 24,975/10 gm.(Rates included VAT)

Chennai: Bar silver 34,320/kg; standard gold 25,150/10 gm; retail silver 36.70/gm; 22 carat retail ornament gold 2,364/gm.

Published on August 10, 2015
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