Singapore: Gold ticked up on Tuesday attempting to recover from a 2 per cent slide in the previous session, but gains may be limited as the US dollar nears a four-year high.
Fundamentals
Spot gold gained 0.4 per cent to $1,154.46 an ounce, after dropping 2.2 per cent in the previous session. Gold rallied on Friday as the dollar weakened after US payrolls data marginally missed expectations, but the dollar has since recovered, adding pressure on safe-haven bullion.
Bullion came under pressure after world equity markets hit their highest level in more than a month on Monday, lifted by a deal to give global investors easier access to China's $3.9 trillion stock market and gains in U.S. equities.
Gold prices could tumble towards $800 to $900 an ounce, not seen since the 2008/2009 financial crisis, as the metal is no longer seen as a decent portfolio diversifier, metals merchant and hedge fund Red Kite said on Monday.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.25 percent to 725.36 tonnes on Monday - a fresh six year low. Russia's central bank has been forced to step up gold buying to absorb domestic production hit by Western sanctions and to boost liquidity in its foreign reserves, sources said.
The US Mint expects to restart sales of American Eagle silver bullion coins on an allocation basis from November 17.
