SYDNEY — Gold futures rose a touch in Asia trading hours on Monday, moving off a multi-month low reached in the previous session, as investors dipped a toe back into the battered market for the precious metal.
Gold for delivery in April GCJ3 -1.25% rose $3.80 to $1,613.40 an ounce in electronic trading.
Reuters
On Friday, gold dropped $26, or 1.6%, to settle at $1,609.50 an ounce on the Comex division of the New York Mercantile Exchange. That was the lowest settlement price for a most-active gold contract since Aug. 15.
As a perceived safe-haven asset, gold has been punished since the end of last year, partly on a more upbeat view of world growth, said commodity strategists at Deutsche Bank.
However, “we believe that there remains support [for gold] at $1,600 an ounce. Furthermore we believe that on [a] 12-month time frame,” both gold and silver appear to offer “compelling value,” the strategists said.
Week ahead: Sequester looms
Next week brings reports on housing and consumer prices, but the spotlight may be dominated by the approaching March 1 spending cuts known as the sequester.
March silver SIH3 -0.97% edged up 12 cents to $29.97 an ounce in Asia trading on Monday.
March palladium PAH3 -1.41% rose $3.50 to $756.65 an ounce while April platinumPLJ3 +0.26% PLJ3 +0.26% PLJ3 +0.26%PLJ3 +0.26% rose $13 to $1,691.10 an ounce.
Platinum-group metals remain supported by supply uncertainty, the Deutsche Bank strategists said.
“We prefer palladium given its superior long-term fundamentals,” they added.
Copper for delivery in March HGH3 -0.92% declined 3 cents to $3.71 a pound. (MarketWatch)
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