Gold falls 1 pc, US bailout vote nears SINGAPORE: Gold slipped more than 1 per cent on Monday as US lawmakers closed in on creating a $700 billion government fund to buy bad debt, with investors also keen to book profits from last week's rally.
US lawmakers geared up to vote to create the fund to alleviate the financial crisis while European authorities raced to the rescue of three troubled banks. "I suspect it will weigh down on gold a little bit, but there will be further selling as risk aversion eases," said Darren Heathcote of Investec Australia in Sydney. Spot gold traded at $873.80 an ounce, down $9.45 or $1.07 per cent from New York's notional close on Friday, when it jumped to its highest in nearly 7 weeks at $911.15 due to uncertainties in the bailout plan. "I think we're rangebound between $860 and probably about $920 at the moment. We're going to find some support by physical buyers," said Heathcote, referring levels last seen in late September and late July. Gold has bounced more than 18 per cent since tumbling to $736 on Sept 11, its weakest in nearly a year. It also benefited from a wave of risk aversion after US investment bank Lehman Brothers filed for bankruptcy. Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ "Investors are still looking around trying to decide which market provides the best investment," said Koji Suzuki, senior analyst at SBI Futures Co Ltd. "The market is likely to stabilise as more detailed news of the deal becomes available," he said. Bullion holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained near a record at 724.63 tonnes. NYS- The euro fell to $1.4505 on growing concerns about the financial system. In industry news, the chief of metals consultants GFMS said gold should surge above $1,000 an ounce as the financial crisis fuels safe-haven fund buying, but may then come under pressure as fickle investors slow purchases. Gold struck a record of $1,030.80 in March. Platinum extended losses and fell as much as 2.8 per cent as poor car sales sparked demand worries. Spot platinum traded at $1,100 an ounce, down $8 or 0.72 per cent, having hitting a low of $1,076 an ounce. Japan's Toyota Motor Corp has started to reduce production at a plant in China, the world's second-largest auto market, a business daily said on Sunday -- Visit site at – http://investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
