Spot gold rebounds in Asia on weaker US dollar and firmer oil

Singapore (Platts)--30Nov2006

Spot gold prices opened markedly higher Friday at $646.00-646.50/oz, up
from Thursday's close of $637.90-638.40/oz.
Local traders said the spot gold price rebounded above $640/oz during the
fairly active New York trade the previous night.
"The various US figures, including major statistics from Chicago,
released yesterday were weaker than expected and the US dollar suffered," one
trader said.
The trader added that major statistics on economy, industry and
consumption from Europe were better than expected, thus giving the Euro the
boost. "EC's GDP was also quite good and the Euro strengthened against the US
dollar," he said.
"Some players were seen moving their funds into the gold market on the
back of a weaker US dollar," he added.
Another trader concurred, adding that the oil price also firmed during
the US trade. "The oil price rose to around $64/bbl and this has helped to
pull the spot gold price up," he said. He noted that the spot gold climbed to
a high of $648-649/oz on active buying but softened to close around
$646-647/oz in US.
A third trader said the opening spot gold price in Asia inherited the
strength from the New York trade the previous night.
"Despite the higher opening level, the Asia spot gold trade was very
quiet. Maybe it is the start of the month and the weekend is near. Players are
not taking any new positions currently. There are other major US statistics,
including the unemployment rate, to be released next week and the US Fed will
be will having a meeting too. I am not expecting much in the afternoon until
the European players come into the market," the trader added.
Meanwhile, gold futures contracts trading on the Tokyo Commodity Exchange
rose amid active trade. The most actively traded far forward October 2007
contract finished Friday's morning session at Yen 2,430 ($21.13)/g, up Yen 26
from Thursday's close. Turnover was 51,621 contract trades. The futures prices
rose on the back of a $11/oz gain the COMEX gold futures on Thursday, and the
firm spot bullion prices.