Gold edges up in Asia despite a strong dollar

Gold edged up in Asian trade Monday despite a relatively strong dollar. Gold for immediate delivery was seen trading at $1667.15 an ounce at 12.00 noon Singapore time while US gold was seen at $1667.94 an ounce on the comex division of nymex.

Strength in the dollar and a rise in U.S. stocks following better-than-expected trade data drew investors away from the precious metal at the end of last week . Analysts said the precious yellow metal is likely to remain highly volatile during the day as most investors stayed away from trade ahead of Chines New Year holidays. Meanwhile, platinum and palladium hovered below their strongest levels in 17 months after platinum group metals outperformed gold and silver on a combination of supply worries and recovering auto demand so far this year. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.23 percent to 1326.89 tonnes on Friday from 1329.90 tonnes on Thursday. Last week, gold and silver closed lower for the week as strength in the dollar and a rise in U.S. equities helped lure investors away from the precious metal. Gold dropped 2 percent for the week while silver ended the week with a 1.6 percent loss. Gold for April delivery shed $4.40, or 0.3%, to settle at $1,666.90 an ounce on the comex division of the New York Mercantile Exchange. March silver settled at $31.44 an ounce, up 4 cents, or 0.1%.

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Courtesy: BULLION STREET