Gold recovers slightly after 3-year trough, but still riding low
21 Jun 2013
Gold today recovered in Singapore from a three-year trough as lower prices attracted Chinese buyers and as Asian stocks fell, but the metal was still headed for its worst week in nearly two years after the US Federal Reserve said it would curb economic stimulus.
Gold for immediate delivery fell over 5 per cent on Thursday, along with other commodities and global stock markets, a day after Fed chairman Ben Bernanke said the US economy was strong enough for the bank to wind down its bond-buying programme, reports Reuters.
While stock markets extended losses on Friday to new nine-month lows, gold edged higher as China, the No 2 gold consumer after India, snapped up bullion at lower prices, traders said.
But sentiment remains weak, with analysts expecting a correction in the wake of slowing US stimulus, which has supported gold prices since 2008.
Gold touched an all-time high of $1,920.30 in 2011. It has fallen 23 per cent this year and over 7 per cent this week on fears over the withdrawal of stimulus.
Spot gold was up 0.9 per cent at $1,288.95 an ounce by 0347 GMT today. The metal earlier fell to $1,268.89 - its lowest since September 2010 and a level which would have marked the worst weekly decline in 30 years if it had ended the day there.
Comex gold futures rose 0.2 per cent after declining over 1 per cent to their lowest in three years.
Buyers in India and China helped cap gold's losses in April when gold fell its most in 30 years over two days. The sharp decline after 12 years of gains released pent up demand in Asia, sending kilo bar premiums to all-time highs.
Demand in India has slowed in recent weeks due to government curbs on imports.
