SINGAPORE (Commodity Online) : Gold prices continued to trade higher in Asian trade after the greenback eased further amid signs of a speedy economic recovery.
The precious yellow metal was seen trading at $950.64 an ounce at 1.00 p.m Singapore time compared with Wednesday’s close of $946.05.
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The precious metal has recently held firm on signs that the worst of the economic crisis is nearly over, after heightened deflation worries had sent gold prices toward $900 an ounce earlier this year.
However, U.S. gold futures for December delivery were at $952.1 per ounce at the same time, down 0.04 percent.
The dollar edged lower on Thursday after the Federal Reserve painted a less gloomy outlook for the U.S. economy, an assessment that led investors to return to commodity-linked currencies.
The weaker dollar also helped support gold as it makes commodities priced in the currency less expensive for non-U.S. investors.
Market participants said, however, that gold was unlikely to climb further as the Fed meeting had ended without any surprises.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust , said holdings stood at 1,065.49 tones as of Aug. 12, unchanged from the previous business day, when it fell 0.29 percent.
Investment demand for gold remains soft, with holdings in the SPDR Gold Trust falling since hitting a record high of 1,134.03 tones on June 1.
In contrast, gold trading is showing signs of recovering in India, a large consumer of the metal, as jewellers take advantage of a price drop to stock up during the festive season.
