* Asia physical demand resilient despite higher prices
* Spot gold technical signals mixed
* Coming up: U.S. ICSC chain stores, weekly; 0745 GMT
(Adds details, comments; updates prices)
By Rujun Shen
SINGAPORE, April 10 (Reuters) – Gold rose to a one-week high
above $1,650 an ounce on Tuesday, on course for its fourth
straight session of gains, as hopes for more monetary easing by
the Federal Reserve and resilient physical demand in Asia
supported sentiment.
It was the first trading day for a number of markets after
the Easter holiday, during which disappointing U.S. jobs data
breathed new life into hopes for more money-printing from the
central bank, which would benefit gold as an inflation hedge.
Physical gold demand got a lift from Indian jewellers who
had been absent from the market for the past three weeks.
“There is some physical gold demand in Asia, although the
volume is not high,” said a Tokyo-based trader. “They need to
stock up anyway despite the relatively high prices.”
Spot gold rose 0.7 percent to a one-week high of
$1,652.55 an ounce, before easing to $1,652.46 an ounce by 0258
GMT. It dropped to a near three-month low just above $1,610 last
week.
U.S. gold gained 0.6 percent to $1,654.
Technical signals for spot gold were mixed as the metal
hovered around the resistance at $1,648 level, said Reuters
market analyst Wang Tao.
Investors will keep a close eye on more data and speeches
from various Fed officials this week to look for cues on the
health of the economy and the U.S. central bank’s attitude to
monetary easing.
“We still prefer gold despite an extended period of profit
taking in 4Q11 and renewed volatility in 1Q12,” said Goldman
Sachs in a research note.
“Negative real interest rates, the prospect of further
unconventional monetary policy in the US and Europe to confront
uncertainties on the growth outlook, and heightened political
tensions in the Middle East are all expected to underpin strong
investment demand.”
The euro zone debt crisis dragged on as investors apparently
lacked confidence in Spain’s ability to handle its finances,
reflected in a poorly received debt auction last week.
Precious metals prices 0258 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1652.46 11.83 +0.72 5.67
Spot Silver 31.86 0.33 +1.05 15.06
Spot Platinum 1623.44 17.49 +1.09 16.54
Spot Palladium 650.95 12.62 +1.98 -0.24
COMEX GOLD JUN2 1654.00 10.10 +0.61 5.57 10210
COMEX SILVER MAY2 31.86 0.33 +1.05 14.11 2167
Euro/Dollar 1.3138
Dollar/Yen 81.70
COMEX gold and silver contracts show the most active months
(Editing by Sugita Katyal)
