BLBG : Gold May Rise a Third Day as Recovery Supports Asian Stocks
Aug. 20 (Bloomberg) -- Gold may gain for a third day on speculation Asian stocks will advance ahead of the release of data that will point to a recovery in global economies.
Bullion traded little changed after gaining 0.8 percent the past two days as global equities rose and the dollar declined, increasing demand for physical assets. Reports today will probably show leading U.S. economic indicators improved for a fourth month and Taiwan’s economic contraction slowed in the second quarter, according to economists surveyed by Bloomberg.
“Gold is closely following stocks these days,” said Kim Kang Nam, a trader with Tongyang Futures Co. in Seoul. “A bunch of data coming due may show the global recovery is on track, providing more fuel to the stock market.”
Gold for immediate delivery rose as much as 0.4 percent to $945.53 an ounce and traded at $942.30 at 9:50 a.m. in Singapore. The MSCI Asia Pacific Index of regional shares rose 0.3 percent the same time.
Among other precious metals for immediate delivery, silver climbed 1 percent at $13.97 an ounce, platinum dipped 0.1 percent to $1,237.50 an ounce as did palladium to $272.25.
