Gold price holds steady as greenback weakens
Spot gold held steady in Asian trade today, on course for a 28 per cent annual rise and its strongest in three years, as it was supported by the weakness in the US dollar, while investors were expecting a further price rally next year.
Spot gold edged up 0.2 per cent to $US1406.15 an ounce. US gold futures were little changed at $1406.9.
Upbeat US data on the jobs market and manufacturing sector on Thursday buttressed the view the economy gained momentum as the year ended, setting the stage for a stronger performance in 2011.
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Holdings in the SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell to 1280.722 tonnes by December 30, its lowest since early June.
Gold is likely to reach $US1500 an ounce, if not beyond, in the next year, traders and analysts said.
Spot silver gained 0.4 per cent to $US30.56, after hitting a 30-year high of $US30.88 in the previous session.
Spot palladium was little changed at $US785.75, on course for a 94 per cent rise on the year and the top performer in commodities of 2010.
Reuters