Gold remains firm in Asia

Jan 11 (Reuters) - Gold prices rose for a second day on
Thursday, extending the gains in the previous session when
prices climbed to the highest since September, as dollar
weakness and a flagging rally in equities enticed investors to
buy the yellow metal. 
    Spot gold        was up 0.2 percent at $1,318.98 an ounce by
0242 GMT. Prices rose to as high as $1,326.56 an ounce on
Wednesday, the most since Sept. 15.
    U.S. gold futures         were little changed at $1,319.10
an ounce.
    Gold prices on Wednesday rose over 1 percent as the dollar
swooned after a report that Chinese officials had recommended
slowing or halting purchases of U.S. Treasury securities. 
    Officials reviewing China's foreign-exchange holdings have
recommended slowing or halting purchases of U.S. Treasuries,
Bloomberg News reported on Wednesday, citing people familiar
with the matter.             
    The U.S. dollar fell to its lowest since November against
the Japanese yen and weakened against a basket of major
currencies        on Wednesday after the report. It fell 0.1
percent to 92.29 on Thursday.       
     "Rising oil prices and strong global growth suggest gold
will remain supported as investors look for inflation
protection," said Stephen Innes, APAC head of trading at Oanda.
     "Also, a highly anticipated stock market correction is
providing support on dips which continues to support the bullish
gold narrative."

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes