Gold supported by buying interest in Asia

The spot gold price was supported by buying interest during Asian trading hours on Thursday December 8.

The spot gold price was recently quoted at $1,177.05/1,177.45 per oz, up $2.70 on the previous close. Trade has ranged from $1,174.30 to $1,177.83 so far.

Demand for physical gold in China remains relatively strong with gold opening on the bid in Asian trade on Thursday, MKS Group said on Thursday morning.

But analysts see the gold price coming under pressure in the near-term as positive sentiments in global markets following upbeat macroeconomic data increases the appeal for risk assets over haven investments like gold.

“Gold is out of favour – there are more exciting market moves going on but are they real or merely knee-jerk reactions to Donald Trump’s victory?” William Adams, a Metal Bulletin Research analyst, said.

Interest in gold is falling ahead of a likely US interest rate rise, but with much political uncertainty ahead, it will be long before gold becomes a sought-after haven again, Adams said.

“But for now, the market seems in no rush to get back into gold,” he noted.

In data, China will release its November trade balance later today with the US-denominated figure expected to reach $46.7 billion.

In US data released on Wednesday, the Jolts jobs report in October showed 5.53 million openings, in-line with expectations while the previous month’s figure was revised up to 5.63 million.

In other commodities, the Brent crude oil spot price was recently at $53.01 per barrel on Thursday, up 0.03% from Wednesday’s close.

In currencies, the US dollar index fell 0.13% to 100.07 recently on Thursday.

In equities, the Shanghai Composite slipped 0.09% to 3,219.24 so far today.

In the other precious metals, the spot silver price increased $0.04 to $17.155/17.175 per oz. Platinum at $947/952 per oz was up $9, while palladium rose $4 to $733/738 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 269.85 yuan ($39) per gram, and the June silver was at 4,266 yuan per kg.

(Editing by Kyle Docherty)

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