Gold traded little changed in Asia as a rally in global equities reduced the appeal of the precious metal as an alternative investment, Bloomberg reported
Gold for immediate delivery was little changed at $921.15 an ounce at 2:58 p.m. Seoul time, after losing 0.7 percent yesterday. The euro gained for a sixth day as Asian stocks extended a global rally, spurring investors to buy higher- yielding assets. The currency traded at $1.2989 at 2:59 p.m. Seoul time.
Among other precious metals for immediate delivery, silver was down 0.3 percent at $12.89 an ounce at 3:06 p.m. Seoul time, platinum gained 0.1 percent to $1,059.25 an ounce and palladium rose 0.4 percent to $200 an ounce.
“Investors will continue to seek to hold gold because we see increasing liquidity globally,” said C.S. Oh, head of the overseas futures team at NH Investment & Futures in Seoul. “It is scarce, while money is not.”
Gold’s so-called near-term resistance is identified at about $942 to $945 an ounce, with a resumption of an upward trend likely toward the February peak at $1,006, Barclays Capital wrote in a report dated March 16. Resistance refers to a point on charts where sell orders may be clustered.
Still, some investors were reluctant to take positions before a two-day meeting that begins today by Federal Reserve Chairman Ben S. Bernanke and colleagues on the deteriorating economic outlook, NH’s Oh said. “The key point that we are looking into is whether the Fed will buy Treasuries or not.”
The U.S. central bank should expand debt purchases to include Treasuries as part of efforts to expand money supply and lower consumer-lending rates, according to a client survey conducted by Macroeconomic Advisers LLC.