SINGAPORE (Commodity Online) : Gold prices advanced further in Asian trade Tuesday as the dollar eased against the euro while physical buying by investors also helped.
Gold for immediate delivery was seen trading at $1375.81 an ounce at 12.30 p.m Singapore time while U.S. gold futures for February was at $1,376.2 an ounce.
Analysts also attributed gold’s advances to persistent worries about indebted euro zone countries, while purchases from investors and jewelers pushed up premiums for gold bars to their highest in two years.
Also helped lift premiums for gold bars, with demand picking up ahead of the Lunar New Year celebration in February.
Gold bars were offered at a premium of $3 to the spot London prices in Hong Kong, matching a similar level seen in late 2008.
The euro found a steadier footing on Tuesday, having clambered up from a four-month trough as some players took profits on bets against the single currency.
On Monday, gold futures for February delivery rose $5.20, or 0.4 per cent, to settle at $1374.10 an ounce on the Comex in New York. The price dropped 3.7 per cent last week.
The metal climbed to a record $1432.50 on December 7 and reached an all-time high priced in euros last month.
Investors in China and India may boost gold purchases to hedge against inflation, said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland.
Silver futures for March delivery gained 19 cents, or 0.7 per cent, to $8.861 an ounce. The price tumbled 7.3 per cent last week.
