By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) – Gold futures rose in late Thursday afternoon trade in Asia as buyers took advantage of lower prices, though investors are cautious in the wake of the metal’s gains since August.
Gold for December delivery GCZ2 +0.40% rose for a second session, gaining $6.40, or 0.4%, to $1,771.10 per an ounce on the Comex division of the New York Mercantile Exchange.
The tone was generally upbeat throughout the Asian session, with bullion flat to higher, helped by concerns about rising inflation following interest rate cuts in South Korea on Thursday and in Brazil late Wednesday.
Bullion dealers in the region said underlying demand for the metal remained steady, though there was little buying appetite to push the metal higher.
“Generally we are seeing a risk-off situation: We are seeing the euro weaker and we are seeing Asian currencies weaker apart from the yuan,” said Sunil Kashyap, managing director at ScotiaMocatta in Hong Kong. “Nothing has significantly changed in terms of supply and demand for the metal.”
In a bearish development, Chinese gold imports from Hong Kong fell 29% in August from a month earlier to 54 tons, according to data released by the Hong Kong Census and Statistics Department.
“China’s near-term appetite for gold appears to be waning as bullion imports from Hong Kong slow,” HSBC analysts said in a note.
Silver futures were also firmer Thursday, with the December SIZ2 +0.46% contract adding 12 cents, or 0.4%, to $34.23 an ounce.
The Bank of Korea on Thursday cut its policy interest rate by a quarter-point to 2.75%, a widely expected move.
The action comes after Brazil’s central bank late Wednesday cut the country’s benchmark interest rate by a quarter point to 7.25%, a record low, and indicated it was at the end of its rate-easing cycle.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
