Gold headed for a third session of gains on Tuesday

Gold rebounded from last month’s losses, although analysts say it is far from re-testing all-time highs hit last September.

Spot gold gained 0.7 percent to $1,576.24 an ounce, after posting a 10-percent rise in 2011.

U.S. gold rose nearly 1 percent to $1,582, before easing to $1,578.20.

Technical analysis suggested spot gold could rise to $1,629 during the day, said Reuters market analyst Wang Tao.

Iran’s progress in its nuclear pursuit has gripped the oil market, and could potentially support safe haven demand in gold. But for now, gold’s move hinges on the macroeconomic conditions and changes in risk appetite.

“Gold is still trading on risk appetite, rather than acting as a safe haven,” said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

China’s official purchasing managers’ index rose to 50.3 in December from 49 in the previous month, indicating a slight expansion in business activity, sending equities and industrial metals higher in Asia. [ID:nL3E8C100G]

Investors will await a raft of U.S. economic data this week, including ISM Manufacturing PMI later in the day, factory orders on Wednesday and non-farm payroll data on Friday, after recent data showed that the world’s top economy was recovering. – Reuters

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Posted by admin on Jan 3 2012. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry