Gold prices marked a sudden rebound in Asian trade Wednesday, following bargain based buying that lead to strong appeal amidst euro recovery, as it climbed to near seven-week high levels.
The precious metal marked a rise over 0.3% touching $1,196.39 an ounce, before valuing at $1,192.75 at 12:39 p.m. in Singapore. The metal recorded a slip 1.4% yesterday, as global equities showed momentum. August-delivery futures also squeezed 0.2% touching $1,193 today.
Gold advancement following two days of slips is triggered by speculation that prices of less than $1,200 an ounce are re-emerging demand for it, as a measure to invest.
Gold track record show has gained nearly 9% this year, touching a record $1,265.30 an ounce level on June 21, over issues that Europe’s sovereign debt crisis may hamper the global economic recovery.
Investors may take advantage of gold’s recent declines to seek a “good entry point,” Hussein Allidina, Head of commodity research at Morgan Stanley, posted in a report yesterday.
The metal’s demand in China showed momentum in the first half, as Government steps to placate the property market and plunging equities effected buying, Song Yuqin, Vice General Manager at the Shanghai Gold Exchange explained.