Gold rebounds amid bargain hunting

The spot gold price rose during Asian trading hours on Wednesday December 28 amid bargain hunting and stronger crude oil prices.

The spot gold price was recently quoted at $1,141.15/1,141.55 per oz, up $7.40 on the previous close. Trade has ranged from $1,138.45 to $1,142.30 so far.

The spot gold price had rallied to as high as $1,150.15 per oz on Tuesday, the highest since December 14, amid bargain hunting, though this was later sold down during US trading hours following a strong stock market performance.

Some support also came from a stronger crude oil price with the Brent crude oil spot price rising as high as $56.24 per barrel on Tuesday, the highest since December 13. It was recently at $55.94 on Wednesday, up 1.66% from the previous day’s close.

The US dollar index is also expected to come under pressure over concerns of a slower US economy in the fourth quarter, hence providing support to precious metals prices, China’s Zhengjin Precious Metals said on Wednesday morning. The broker sees near-term support for the spot gold price at $1,130 per oz and resistance at $1,170.

Last week, economists at the New York Federal Reserve estimated US GDP growth of 1.8% in the fourth quarter of this year and first quarter of next year, while the Atlanta Federal Reserve Bank’s latest forecast for fourth quarter’s GDP growth was at 2.5%.

The forecast growths slow from the US final third quarter GDP growth of 3.5%.

In currencies, the US dollar index was recently at 102.99, down 0.02%.

In equities, the Shanghai Composite fell 0.07% to 3,112.34 so far on Wednesday.

In the other precious metals, the spot silver price increased $0.26 to $15.95/16.01 per oz. Platinum gained $16 to $904/909 per oz, and palladium jumped $21 to $674/679 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 266.85 yuan ($38) per gram, and the June silver was at 4,056 yuan per kg.

(Editing by Kyle Docherty)

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