BLBG: Gold Rebounds From Two-Week Low as Dollar Retreats, Stocks Rise
By Kim Kyoungwha
July 30 (Bloomberg) -- Gold gained in Asia, reversing an earlier decline as the dollar ended a two-day advance and regional stock markets rebounded.
Bullion added as much as 0.2 percent to $931.72 an ounce as the Dollar Index slipped and the MSCI Asia Pacific index of equities rallied 0.8 percent after China’s central bank said yesterday it will maintain a “moderately loose monetary policy” to support economic expansion. It made the statement after the country’s benchmark stock index tumbled by the most in eight months on concern the bank may tighten policy to rein in money supply growth.
“The course of gold is being dictated by the dollar’s movement,” said Bae Jung Seok, head of trading with Eugene Investment & Futures Co. in Seoul. “But the rebound is not that strong and gold may enter a correction in the coming sessions.”
Gold for immediate delivery added 70 cents to trade at $930.70 an ounce at 3:16 p.m. in Singapore. The precious metal has gained 5.6 percent this year.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, decreased 10.38 metric tons to 1,072.87 tons yesterday, the lowest level since March 17, according to figures on the company’s Web site.
Among other precious metals for immediate delivery, silver gained 0.4 percent at $13.36 an ounce, platinum dropped 0.3 percent at $1,173 an ounce and palladium added 1 percent to $257.
To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net
