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Gold gains on bargain-hunting, Japan current account data

Published 10/08/2012, 09:33 PM
Updated 10/08/2012, 09:34 PM
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Investing.com - Gold prices rose in Asian trading on Tuesday after Japan reported a stronger-than-expected current account balance for August, which sent investors leaving the safe-harbor dollar in search of nicely-priced gold positions.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.29% at USD1,780.85 a troy ounce, up from a session low of USD1,778.65 and down from a high of USD1,781.25 a troy ounce.

Gold futures were likely to test support at USD1,768.65 a troy ounce, Monday's low, and resistance at USD1,798.05, Friday's high.

Japan’s current account balance rose more than expected last month, official data showed on Monday.

In a report, Ministry of Finance said that Japan’s Current Account rose to a seasonally adjusted 0.72T, from 0.34T in the preceding month.

Analysts had expected Japan’s Current Account to rise 0.52T last month.

The news fueled some demand for risk that boosted gold and deflated the dollar despite otherwise bearish news for the precious metal.

The World Bank earlier cut its 2012 growth forecast for developing Asia-Pacific economies to 7.2% from a May forecast of 7.6%.

The World Bank also said China's economy will growth 7.7% this year, down from a May forecast of 8.2%.

The International Monetary Fund, meanwhile, cut its 2012 global growth forecast to 3.3% from a July estimate of 3.5%.

Elsewhere on the Comex, silver for December delivery was up 0.60% and trading at USD34.220 a troy ounce, while copper for December delivery was up 0.54% and trading at USD3.774 a pound.







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