SINGAPORE (Commodity Online) : Gold prices remained highly volatile in Asian trade Wednesday after an overnight drop near seven-week low.
Spot gold was seen trading at $1088.31 an ounce at 11.30 a.m Singapore time while U.S. gold futures for February delivery added $2.0 an ounce to $1,088 at the same time.
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The precious yellow metal edged higher as bargain hunters resurfaced after prices hit low the previous day, but a firmer dollar was likely to cap gains.
On Tuesday, February delivery fell $9.30, or 0.9 percent, to finish at $1,086.70 an ounce. Earlier in the session, the precious metal dipped to as low as $1,075.20, the weakest level since Nov. 3.
Spot gold closed at $1083.55 in New York. Gold is about 11 percent below a lifetime high of $1,226.10 struck in early December.
The greenback remained high against the yen in Asia on Wednesday, with buyers enticed by U.S. yields at four-month highs and the steepest yield curve on record.
Meanwhile, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings stood at 1,132.708 tonnes as of Dec. 22, unchanged from the previous business day.
Premiums for gold bars jumped to their highest level in months after a drop in bullion prices spurred buying from investors and jewellers across Asia.
