By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) -- Gold futures climbed by as much as $24 an ounce in electronic trade Monday morning in Asia to touch their strongest intraday level in more than a month, as a further weakness U.S. dollar and strong trade figures from China lured investors.
"We've seen carry-over selling in the U.S. dollar, which is helping to boost U.S.-dollar denominated commodity prices," said Ben Potter, a research analyst at IG Markets in Melbourne. "Gold is flying."
Gold for February delivery rose as high as $1,163 an ounce in electronic trading on Globex. The contract later eased back slightly to $1,156.70, still up $17.80.
"Gold has once again proven the perma bears wrong and continues to march to a different drummer," said Peter Grandich, a metals writer at Agoracom.com. "For almost a decade now, strong physical buying enters on a meaningful pullback and this time is no different."
On Friday, the contract ended higher by $5.20, or 0.5%, at $1,138.90 an ounce, on the Comex division of the New York Mercantile Exchange, finishing the week 3.9% higher.
Gold prices have found support as the U.S. dollar traded lower against the yen, buying 92.26 yen versus 92.49 yen late Friday in North American trading. Largely disappointing U.S. jobs data weighed on the dollar and boosted gold's investment appeal. See Friday's Metals Stocks.
Commodities are also getting a big boost from Chinese trade data, said Potter. Crude futures climbed to a 15-month high above $83 per barrel. See Futures Movers.
"China's import and export numbers smashed expectations," Potter said.
In particular, "China's iron-ore imports for December were the second highest on record," he said, adding that "these numbers could really help boost the big miners" and that the data are "further evidence the global economic recovery is gaining momentum." See full story on Chinese trade data for December.
Among the metals mining shares in Asia Monday, BHP Billiton Ltd. (BHP 81.28, +1.10, +1.37%) (AU:BHP 44.47, +0.85, +1.95%) added 1.8% in Sydney, Rio Tinto Ltd. (AU:RIO 80.00, +0.99, +1.25%) (RTP 237.20, +2.61, +1.11%) climbed 1.3% and Newcrest Mining Ltd. (AU:NCM 36.82, +0.62, +1.71%) (NCMGF 33.90, +0.10, +0.30%) rose 2.3%. Zijin Mining Group Co. (HK:2899 8.14, +0.28, +3.56%) (ZIJMF 0.98, -0.09, -8.41%) added 3.2% in Hong Kong.
