Gold rose in Asia as the metal's drop to a two-week low spurred purchases and a decline in the euro and equity markets prompted some investors to seek an alternative investment.
Gold for immediate delivery gained as much as 0.3 per cent to $US1,105.25 an ounce, before trading at $US1,103.65 at 9:10 a.m. in Singapore. The precious metal fell to $US1,098.70 on March 12, the lowest price since February 25. Bullion priced in euro climbed today for the first time in four days as the 16-nation currency declined.
''Gold will continue to consolidate in the $US1,100-to- $US1,150 range as investors assess the global economic recovery,'' Wang Zhengzheng, analyst at China International Futures Co. (Beijing), said today. ''Gold will be supported as long as uncertainties about the economy remain.''
The precious metal may also benefit from escalating tension between the US and China, according to HSBC Securities analyst James Steel. Chinese Premier Wen Jiabao yesterday rebuffed calls for the yuan to appreciate.
''I don't think the renminbi is undervalued,'' Wen said at a press conference in Beijing marking the end of China's annual parliamentary meetings, using another term for the yuan. ''We oppose countries pointing fingers at each other and even forcing a country to appreciate its currency.''
Copper fell for a second day on concern China may take further steps to cool its economy, potentially damping metals demand, and triggering losses in related equities. The regional benchmark MSCI Asia Pacific Index fell for the first time in three days.
Silver was little changed at $US17.060 an ounce, platinum fell 0.3 per cent to $US1,602.75 an ounce, and palladium slid 0.6 per cent to $US459.75 an ounce.
