Gold edges up on improved physical buying

Gold advanced in Asian trade Monday as physical buying improved. Gold for immediate delivery was seen trading at $1583.67 an ounce at 12.00 noon Singapore time while US gold was seen at $1583.27 an ounce on the comex division of nymex. Analysts said the precious yellow metal is likely to remain highly volatile during the day as investors were cautious over the outcome of an unpredictable election in Italy and its impact on the euro zone. The euro bounced from a six-week low around $1.3145, but further upside may be limited as investors eye the vote in Italy. They added that an unstable government in Italy could cause another crisis of confidence in the European Union's single currency. Gold hit a seven-month low of $1,554.49 on Thursday after minutes from the U.S. Federal Reserve's latest policy meeting triggered worries the central bank might stop or slow its bond buying programme. On Friday, April gold settled at $1,572.80 an ounce on the Comex division of the New York Mercantile Exchange, down $5.80 for the session. Gold struck a record of around $1,920 in September 2011, when a worsening debt crisis in Europe ignited a buying rush.

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Courtesy:Bullion Street