RTRS: PRECIOUS-Gold ticks up after fall; equities, base metals weigh
By Lewa Pardomuan
SINGAPORE, Feb 7 (Reuters) - Gold edged up on Monday after
falling in the previous session on U.S. payrolls data and
unfounded reports that President Hosni Mubarak of Egypt may step
down soon, but gains in equity markets and industrial metals
continued to weigh on bullion.
Signs of improvement in the U.S. economy drove copper
prices, often seen as a barometer of economic conditions, to an
all-time high above $10,120 a tonne while denting gold's
safe-haven appeal.
Spot gold added $1.01 to $1,347.91 an ounce -- still
well below a record high around $1,430 an ounce in December.
U.S. gold futures for April barely moved at $1,348.9
an ounce.
"I think that markets viewed the (U.S.) payroll report as
positive in general. Copper surged above $10,000 a tonne. If you
look at industrial metals and equities, they have moved higher,"
said Ong Yi Ling, investment analyst at Phillip Futures.
"Investors have greater confidence regarding the economic
recovery and hence safe haven demand for gold could be reduced
as investors switch to risk assets," said Ong, who pegged
resistance at $1,360 an ounce.
Government data showed Friday the U.S. economy created
36,000 jobs in January, far fewer than expected, but the
unemployment rate fell to its lowest since April 2009.
Gold was also under pressure from stronger equities, which
could prompt investors to switch some of their money into stock
markets. Mubarak's resignation could reduce demand for gold,
although fears of unrest following his departure could also
provide support.
Mubarak held on to power on Monday, defying a popular
uprising against his autocratic rule, after the government
opened talks with opposition groups to resolve Egypt's deepest
crisis in 30 years.
Asian stocks pushed towards a near three-year peak on Monday
as the U.S. job market showed further signs of recovery,
highlighting a brighter economic outlook, while the dollar eased
against a basket of currencies.
Spot gold is expected to fall to $1,324 per ounce, as it
could have completed a rebound at Friday's high of $1,357.93,
according to Wang Tao, a Reuters market analyst for commodities
and energy technicals.
For a gold technical outlook:
here
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust , said its holdings slipped to 1,228.864 tonnes
by Feb. 4 from 1,229.277 tonnes on Feb. 3.
In other precious metals, silver hardly moved,
palladium tracked equities higher, while platinum
slipped after rising to its highest since 2008 on Friday.
"We believe that the upside in the platinum price will
remain more limited in 2011 and 2012 than palladium given the
ongoing surplus in its physical market," said BNP Paribas in a
report.
"Longer term, however, we have a positive view of the
platinum price given the ongoing constraints on the supply
side."
Palladium is expected to outpace platinum to make further
gains this year but investors should not hold out for a repeat
of 2010's stunning rises as growth in emerging car markets
moderates, a Reuters poll showed.
