Articles
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PRECIOUS-Gold rebounds after heavy loss; Asia rushes to buy
Asian buyers scoop up gold after prices decline
* Spot gold could rebound to $1,742/oz - technicals
* Coming up: Germany industrial orders, Dec; 1100 GMT(Adds comments, details; updates prices)
By Rujun Shen
SINGAPORE, Feb 6 (Reuters) - Spot gold rebounded on
Monday as Asian buyers rushed to snatch bargains after
better-than-expected U.S. jobs data helped prices fall nearly 2
percent in the previous session, but the uncertain global
economic outlook remains supportive of bullion.
Spot gold gained 0.6 percent to $1,736.05 an ounce by
0307 GMT, after posting its biggest one-day drop in more than a
month.
U.S. gold was little changed at $1,739.10.
The surprisingly strong U.S. labour market data on Friday
boosted confidence in the recovery of the world’s largest
economy, lifting prices of shares and industrial metals while
dampening hopes for fresh quantitative easing measures.
But traders and analysts said gold’s outlook remains rosy as
the uncertain global economic outlook will force central banks
around the world keep their monetary policies accommodative.
“The QE3 (third round of quantitative easing) is less likely
after the jobs data, but the longer-term low interest rate
outlook is still potentially supportive of gold,” said Nick
Trevethan, senior commodity strategist of ANZ in Singapore.
In addition, bargain hunting from Asian buyers, especially
from China, helped gold prices to rebound, traders said.
“There has been quite a lot of buying since Shanghai opened,
as gold was 30 bucks cheaper than they last saw it,” said a
U.S.-based trader.
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