GOLD STEADY BELOW RECORD, WEAK DOLLAR SUPPORTS
Spot Gold held steady on Friday in holiday-thinned trade, after hitting record highs in five consecutive sessions, supported by a weak dollar and a
list of other supporting factors, including geopolitical uncertainties and inflation concerns.
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The dollar index, a measure of the greenback's strength against a basket of currencies, dipped to a near three-year low, as record low interest rates and the crushing weight of the U.S. budget deficit pushed it closer to an all-time trough. Spot Gold edged up 0.2 percent to $1,504.99
Spot Gold held steady on Friday in holiday-thinned trade, after hitting record highs in five consecutive sessions, supported by a weak dollar and a
list of other supporting factors, including geopolitical uncertainties and inflation concerns.
For more See Pages
The dollar index, a measure of the greenback's strength against a basket of currencies, dipped to a near three-year low, as record low interest rates and the crushing weight of the U.S. budget deficit pushed it closer to an all-time trough. Spot Gold edged up 0.2 percent to $1,504.99
ounce, off its record high of $1,508.75 hit on Thursday. It was poised to score its sixth consecutive week of gains. Spot Gold rallied over $50, or nearly 4 percent, in the past seven sessions. The Relative Strength Index, or RSI, rose to nearly 74, a level unseen since October last year,
suggesting the market has been heavily overbought. Li said Gold still has more steam to run on and expected prices to peak at $1,550 by the end of the second quarter, on the ongoing Middle East unrest, sovereign debt concerns on both sides of the Atlantic and inflation worries. Concerns
on rising global inflation will likely drive Gold even higher in the next few years, albeit in a slower pace.
The Shanghai Gold Exchange has started a trial for over-the-counter trading, providing a convenient tool for institutional clients to trade large quantities of Gold. Spot silver rose to as high as $46.64, just 4 cents off the 31-year high. It was trading at $46.46, up 51 percent so far this year,
outstripping Gold's 6 percent rise. Holdings in the physically backed exchange-traded precious metals funds dipped ahead of the long Easter weekend. SPDR Gold Trust, the world's biggest Gold ETF, saw holdings dip 0.6 tonnes to 1,229.643 tonnes. Singapore and Hong Kong markets
are closed on Friday for a public holiday, while Hong Kong will remain closed on Monday.
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