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Home / International Markets / Gold prices soar to $1,230/ounce from $1140/ounce last week
Gold prices soar to $1,230/ounce from $1140/ounce last week

Gold prices soar to $1,230/ounce from $1140/ounce last week

SINGAPORE: Gold prices hiked above $1,200 small amount on Friday as consumers helped the metal hold up against rising stock markets, paring losses fueled by worries over a alarming climb in U.S. interest rates.
A surge in gold prices to above $1,230 an ounce last week from around $1,140 a week earlier has spurred caution among investors, said Yuichi Ikemizu, branch manager at Standard Bank in Tokyo.
“People are not overly bearish anymore. They have learned their lesson when gold rallied sharply so they’re not bold enough to go short around these levels,” he said.
Spot gold was up 0.2 percent at $1,200.50 an ounce by 0711 GMT, after hitting a session high of $1,201.50. The gain helped cut bullion’s weekly loss to 1.8 percent from more than 2 percent earlier in the day.
That fall was largely on account of Monday’s 2.5-percent drop – its deepest this year – amid worries over rising U.S. interest rates in 2015.
The Fed, after wrapping up a two-day meeting on Wednesday, signalled it was on track to increase rates next year but said it was taking a patient stance, allowing gold to erase some of its losses.
Fed’s no-rush stance to withdraw stimulus from the U.S. economy sent Asian shares to their best day in 15 months on Friday, taking their cue from a rally on Wall Street.
U.S. gold for delivery in February gained 0.5 percent to $1,200.40 an ounce.
“Gold prices are currently capped by a stronger dollar and ongoing weak oil prices. Equity market gains further reduce the appeal of alternative assets like gold. Despite this, gold keeps challenging the $1,200/oz level,” HSBC analysts said in a note.
In India, gold importers are offering a discount of $2 an ounce versus London prices for the first time in almost five months due to excess market supply.