SINGAPORE (Commodity Online) : Gold dropped from a two-month high in Asian trade Wednesday but likely to regain momentum on new reports of improving consumer confidence and home sales in the US.
Gold for immediate delivery was seen trading at $1245.82 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $1,248.7 an ounce.
Analysts said the precious yellow metal is likely to climb back on unabated demand due to the uncertainty surrounding global growth.
Meanwhile, Holdings in SPDR Gold Trust rose by 3.952 tones to 1,302.508 tones on Aug. 31, from 1,298.556 tones on Aug.27.
On Tuesday, gold climbed to a two-month high as investors continued to worry about the prospects of the global economy and sought refuge in the yellow metal.
Gold for December delivery rose $11.10 to settle at $1,250.30 an ounce as it headed toward its record high settlement of $1,258.30 an ounce, which was set earlier this year. Spot gold climbed to end at $1249.90 an ounce
Silver also gained as concerns lingered about the economy even after new reports showed improving consumer confidence and home sales. The December contract settled up 35.8 cents at $19.432 an ounce.
In other metals contracts, September palladium rose $2.50 to settle at $500.40 an ounce while October platinum lost $9.60 to $1,523.50 an ounce.