RTTN: Gold Moves Up Near $1,200 As Dollar Slide Continues
(RTTNews) - The price of gold moved up Wednesday morning amid speculation that demand from China will improve. Also, the continued weakness in the U.S. dollar and falling equities added bullishness to the price of gold.
China announced yesterday that it will allow more commercial banks to import and export gold as well as to participate in trading at the Shanghai Gold Exchange. This move is aimed to bring more gold into the country in order to satisfy local demand, analysts opined.
Gold for December delivery, the most actively traded contract, moved up $10.90 to $1,198.40 an ounce.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,282.28 tons.
Meanwhile, the U.S. dollar continued to linger near its 3-month low versus the euro and around its 6-month low against the British pound. The buck edged toward a 1995 low versus the yen overnight.
Elsewhere, the prices of silver and platinum ticked higher in morning deals.
Traders will look to the ADP's data on employment change and ISM non-manufacturing index from the U.S., due out later today, to get further clues on the strength in the recovery of the economy.
