Gold, Silver Up; Euro Trepidation Helps
Source: Dow Jones Newswires, James Campbell (1/10/11)
"Bargain-hunting in gold could contribute to a bounce in price."
"After declining for five consecutive days, some bargain-hunting in gold could contribute to a bounce in price," Phillip Futures said in a report.
Looming euro-zone bond auctions, starting with Portugal on Wednesday, are also supportive for gold, with the euro at $1.2898, close to four-month lows, at 0610 GMT.
"With a U.S. economy recovering slower than expected and worries over the euro zone back on the front line, it seems as we have seen the year low (for gold)," MKS Finance said in a note, referring to Friday's dip to $1,353 an ounce.
Spot gold was trading at $1,373.90/oz, up $4.10 since Friday's New York close, while Tocom was closed for a holiday in Japan.
Spot silver was at $28.88/oz, up $0.19.
Silver, which is expected to come under some pressure due to ongoing commodity index weighting, will rely on the $28 level for support.
"$28 is looking like a particularly important level for silver, with the 50 day moving average, the 23.8% retracement of the August low, and previous lows all converging at that level," Mitsui Global Precious Metals said.
Platinum group metals were also higher, taking their cue from gold. Spot platinum was at $1,740/oz, up $9, while spot palladium was at $756/oz, up $6.