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Gold futures climb in Asian trade

Published 08/04/2011, 11:04 PM
Updated 08/04/2011, 11:08 PM
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Investing.com – Gold futures advanced in mid-day Asian trade Friday, recovering from declines suffered earlier in the day as investors sold bullion to cover losses in equity markets.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,653.25 a troy ounce, edging 0.38% higher.   
             
Gold futures had fallen from a record USD1,684.90 an ounce as dealers sold the metal to cover steep declines on Wall Street Thursday and in Asian stock markets in Friday trading.

Dragged down by growing fears of a slowdown in the U.S. economy, the Dow Jones Industrial Average sank 4.3%.

The Nasdaq Composite Index tumbled 5.1%, its worst percentage loss since January 2009, and the S%P 500 gave up 4.8%, its worst percentage drop since February 2009.

By mid-day Friday trade Hong Kong’s Hang Seng Index had plunged 4.3%, Japan’s Nikkei 225 Index tumbled 3.4%, Australia’s S&P/ASX 200 declined 3.9%, and South Korea’s Kospi Index dropped 3%.

Financial service provider UBS raised its one-month gold price forecast to USD1,725 per ounce and lifted its three-month price estimate to USD1,850 an ounce, up 13.5% from an estimate.

An earlier UBS report predicted gold prices would remain well-supported in the short-term, citing sovereign debt concerns in Europe and slowing global economic growth .

Elsewhere on the Comex, silver for September delivery rose 1.72% to trade at USD39.29 a troy ounce, while copper for September delivery fell 0.19% to trade at USD4.202 a pound.




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