By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures rose in electronic trading Wednesday, putting the metal on track for its third session of gains, while the broader metals complex declined.
Gold for December delivery GC1Z +0.19% added $8.10, or 0.5%, to trade at $1,721.50 an ounce during Asian trading hours.
The metal has moved higher for the past two sessions. Gold has tended to trade in line with stocks and commodities in recent months and its safe haven appeal has diminished - replaced by interest in U.S. bonds and the dollar - as the debt-crisis in Europe worsened.
“Despite price volatility, physical demand for gold has been very strong in recent months,” Anne-Laure Tremblay, precious metals strategist at BNP Paribas in London said in a monthly gold review.
“Macroeconomic factors, such as liquidity and inflation, have been less supportive, but we expect these to evolve more favorably in the near future, notably as both the European Central Bank and the Federal Reserve may implement quantitative easing measures,” Tremblay said.
“Further sharp moves in the price are likely over the next months given the high level of uncertainty, particularly relating to euro zone issues,” she added.
The strategists forecast an average gold price of $1,580 an ounce in 2011, rising to $2,025 an ounce in 2012, and $2,280 an ounce in 2013.
The broader metals complex fell in Asian trading, with copper posting the steepest losses.
December copper HG1Z -1.51% lost 5 cents, or 1.5%, at $3.33 a pound. December silver SI1Z -0.64% declined 5 cents, or 0.2%, to $31.81 an ounce.
January platinum PL2F -0.75% dropped $5.70, or 0.4%, at $1,535.00 an ounce. March palladium PA2H -0.24% shed $1.25, or 0.2%, to $583.00 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
