Bullion
for immediate delivery traded at $1,188.14 an ounce at 9:07 a.m. in
Singapore from $1,189.54 on Monday, when prices climbed to $1,191.71,
the highest since March 6, according to Bloomberg generic pricing. The
precious metal advanced 2.1 percent last week, the most since January.
Gold
rebounded from a three-month low last week as Fed Chair Janet Yellen
suggested that policy makers are in no hurry to raise rates, even as the
Fed dropped a pledge to be patient on tightening. The dollar weakened
on Monday after Stanley Fischer, the U.S. central bank’s vice chairman,
said there won’t be a “smooth upward path” for rates, even with the
first increase potentially warranted by the end of 2015.
Fed
officials on March 18 lowered their estimates for borrowing costs at
the end of 2015 to 0.625 percent from December’s estimate of 1.125
percent. Traders had been exiting gold in anticipation of steeper rate
gains, which usually send investors to assets with better yield
prospects such as stocks.
The
Bloomberg Dollar Spot Index dropped for a second day on Monday after
tumbling 2.2 percent last week, the biggest weekly decline since October
2011. Gold typically trades counter to the U.S. currency.
Bullion for April delivery rose 0.1 percent to $1,188.50 an ounce on the Comex, set to rise for a fifth day.
Source: Bloomberg
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 8:40 AM
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