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Gold edges up after 1 pct drop, dollar weighs

Written By Kontak Perkasa Futures on Wednesday, April 24, 2013 | 9:23 AM

Reuters, (24/4) -- Gold stabilised on Wednesday after falling more than 1 percent in the previous session, but the precious metal is still under pressure from a firm U.S. dollar and daily falls in exchange-traded funds holdings.

Spot gold rose $4.20 an ounce to $1,416.44 by 0026 GMT on bargain hunting. Prices sank to around $1,321 on April 16, its lowest in more than 2 years, in a brutal sell-off that surprised ardent gold investors and bulls.

U.S. gold for June delivery was at $1,416.50 an ounce, up $7.70.

Premiums for gold bars soared to multi-year highs in Asia on Tuesday after a spate of physical buying led to supply constraints, with dealers in top consumer India expecting a surge in imports this month.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.68 percent to 1097.19 tonnes on Tuesday from 1104.71 tonnes on Monday. The current holdings are at multi-year lows.

The U.S. Mint said it has suspended sales of its one-tenth ounce American Eagle gold bullion coins as surging demand after bullion's plunge to two-year lows depleted the government's inventory.
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:23 AM
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