Finotec News Archive - September 03 2007
Gold Falls as Physical Demand Slows
Gold fell in Asia as physical demand slowed following the precious metal's rise to a three-week high.Rodian Rahnayev 
03 September 2007
Print this article
Subscribe to RSS
Gold fell in Asia as physical demand slowed following the precious metal's rise to a three-week high.
Gold rose the most in a week on Aug. 31 on speculation that a rally in equities would boost investment demand. The Morgan Stanley Capital International Asia-Pacific Index gave up early gains after Japan's government reported an unexpected drop in corporate investment and the steepest slide in wages in three years. It was little changed at 152.10 at 1:20 p.m. in Singapore.
``In Asia the market is primarily driven by physical buying and physical demand has slowed down at this price level,'' said Ellison Chu, manager of precious metals at Standard Bank Asia Ltd. in Hong Kong. ``Overall trading has been very quiet and is likely to stay this way for the rest of the day as the U.S. is closed for a holiday today.''
A strike a Lihir Gold Ltd. mine, which halted production temporarily, is seen as supportive for gold. The Papua New Guinea gold-mining company said today that it's `hopeful'' the strike may end in the next two days as the government steps in to try and resolve the dispute.
Finotec Analysis Team
03 September 2007
Print this article