HONG KONG (MarketWatch) — Gold futures edged higher in Asian trading hours on Tuesday, with investors more inclined to add exposure amid signs the precious metals sector is beginning a new price advance following a multi-week period of stabilization.
Gold for December /quotes/zigman/661658 GC1Z +0.53% delivery rose $12.10 to $1682.90 a troy ounce in the Comex division of the New York Mercantile Exchange.
The December gold contract ended at its highest settlement since Sept. 22 in North American trading on Monday, after adding 2.1% to finish at $1,670.80 per troy ounce.
Investors are moving back into gold as the effect of the recent Comex margin hikes wear off,and as commodities have generally been recovering over the last few days on the back of hopes for a Eurozone crisis solution,” said Tyche Group associate director Martin Hennecke in Hong Kong.
“The real test for gold however will come when global economic/market sentiment sours again since the sovereign debt crisis… is far from fixed as yet,” he said.
Chris Oliver-Marketwatch October 10, 2011
Other analysts said demand for gold around Asia appears to be strong, with indications that Chinese were solid buyers during the Golden Week holiday. Lower prices helped draw buyers off the sidelines, according UOB KayHian.
London-based bullion brokers Sharps Pixley said physical sales in China during the seven-day holiday were 50% higher than levels seen a year earlier, in spite of spot prices that were around $300 per ounce higher.
In other metals trading Tuesday, December silver /quotes/zigman/663010 SI1Z +0.67% futures rose 29 cents, or 0,9% to $32.26 an ounce. The contract jumped 3.2% in the Monday’s North American session, settling at $31.98 an ounce.