WSJ:PRECIOUS METALS: Gold Steady In Asia; Physical, Investment Demand Supports
By Arpan Mukherjee
Of DOW JONES NEWSWIRES
WELLINGTON (Dow Jones)--Gold prices were steady in Asia Friday as some physical buying and investment demand supported prices amid general optimism that Europe's debt issues will be addressed by the end of the month.
At 0609 GMT, spot gold was at $1,681.40 a troy ounce, up $1.60, but a strong dollar limited any chances of sharp rally.
The euro was at $1.3853 compared with $1.3884 late Friday in New York.
Over the weekend, finance officials from the Group 20 industrial and developing economies met and delivered cautious signs of progress by the euro zone toward tackling its banking and sovereign debt crisis.
"We have not yet stepped out of the woods, but there are some bright spots," a senior Tokyo-based trader said.
Traders and analysts said gold appeared to be consolidating before attempting to move higher.
The absence of "fresh negative news is keeping gold around current levels," said Pradeep Unni, senior analyst at Richcomm Global Services in Dubai.
In India, physical demand for gold has been moderate, around 2010 levels, despite high prices, said Ketan Shroff, the Mumbai-based director of Pushpak Bullions Pvt. Ltd.
There is higher demand for gold coins and bars, and retail investors in the subcontinent have been buying on every dip in prices, he said.
Gold buying usually picks up in India during the festive season in the last quarter. Buying of gold jewelry during this period is considered auspicious.
"If gold prices fall by another $20-$30, we expect a sharp spike in demand," Shroff said, adding that physical supplies have increased, easing premiums in the local market.
At 0609 GMT, spot silver is at $31.87/oz, down 29 cents, platinum is at $1,545/oz, down $7, while palladium is at $628/oz, up $7.
Specialty chemicals company Johnson Matthey PLC (JMAT.LN) said that firmer platinum prices last week had little to do with buying by industrial customers, as they had already bought the metal on price dips earlier, so the metal just tracked gold prices.
Meanwhile, MKS Finance said it has heard that Russia may be exporting its last 9 tons of palladium from existing stocks in equal parts in 2012 and 2013. After this it is believed that the stocks will be practically nil, the bullion refiner said.
-By Arpan Mukherjee, Dow Jones Newswires; 64-4-471-5990; arpan.mukherjee@dowjones.com
