Economist and Hedge Fund Manager Shayne Heffernan takes a look and Gold trading live from Asia.

Spot gold rose as much as 0.4 % to $1,714.40 and was at $1,710.85 at 12:45 p.m. in Singapore. Gold fell 1.2 % yesterday, the most since July 10, to the lowestlevel in more than six weeks as the dollar gained. Gold for December delivery advanced 0.2 % to $1,712 . Silver gained as much as 1 % to $32.01 before trading at $31.945. The metal slumped to a seven-week lowof $31.5537 yesterday. Spot platinum rose for the first time in five days, adding 0.6 % to $1,581. Palladium climbed 0.8 % to$601.50, snapping a four-day decline.

Soft results statements from DuPont, United Technologies and Caterpillar have undermined stock markets, while Moody’s decision to cut its ratings on regions such as Catalonia pushed the eurozone debt crisis into the spotlight.

Pressure on gold from weakness in stocks helped push prices to six-week lows at $1,705.60/oz, putting it on track to decline in October for the first month in five.

In India, historically the world’s largest bullion consumer, demand picked up as prices dipped ahead of a key festival season that is seen as an auspicious time to buy gold.

Gold-backed exchange-traded funds, which issue securities backed by physical metal, saw inflows on Monday of around 112,223 ounces, with the bulk of those moving into New York’s SPDR Gold Trust.

Harmony Gold Mining, South Africa’s third-largest gold producer, on Tuesday issued striking miners at one of its South African mines with a dismissal ultimatum, saying the strike had already cost it 13,000 ounces in lost production.

Factors

FOMC Committee concludes a two-day policy-setting meeting.
Fifty-eight % of 60 economists surveyed said thelatest round of quantitative easing will last until late next
year or beyond after the FOMC
Emerging-market demand for bullion haspicked up, given the recent gold price decline
Imports by India, are set to climb inthe three months to Dec. 31, rising for the first quarter in six months
Holdings in gold-ETP unchanged at 2,581.9 metric tons yesterday,

 

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service

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