Gold demand in Singapore in 1993 was at 21.4 tonnes and in Malaysia it stood at 22.4 tonnes. Six years after Singapore implemented the GST in in 1994,and Singapore only recorded 12.1 tonnes while Malaysia raked up 21.1 tonnes - Reuters Photo.
BENGALURU: Gold rose for the fourth straight session on Wednesday, on a technically-driven rebound in thin volume, amid a slightly weaker dollar.
Spot gold edged 0.2% higher to US$1,141.45 an ounce by 0324 GMT. Bullion rose to a near two-week high of US$1,148.98 on Tuesday.
US gold futures were up 0.3% at US$1,142.40 per ounce.
"?Currently, we do not see many strong fundamental reasons to push gold prices further down. However, after the Fed conference in December, there should be some technical rebound in gold prices," said Jiang Shu, chief analyst, Shandong Gold Group. "?Since there are a few trading days left until the end of this year we think that the rebound will not be very strong."
Reflecting bearish investor sentiment, assets in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund fell 0.14% to 823.36 tonnes on Tuesday. Holdings are down over 13% since the US presidential elections.
"?Currently, there are very strong expectations of more rate hikes next year," said Shu, adding that declining gold prices have had a negative impact on the bullish sentiment in the physical gold price.
The Federal Reserve raised US interest rates on Dec 14 for the first time in a year and signalled three more increases next year from the previous projection of two.
US consumer confidence shot to its highest in more than 15 years in December as Americans saw more strength ahead in business conditions, stock prices and the job market following the election of Donald Trump as president in November.
The upbeat data helped underscore expectations that the US central bank would raise interest rates at a faster pace next year.
Expectations of further US interest rate increases lower demand for the non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
The dollar index, which measures the greenback against a basket of currencies, was down 0.1% at 102.96.
"?We don't think much will be going on in the markets for the balance of the week. Sharp moves in either direction must be weighed against the fact that liquidity remains fairly light," INTL FCStone analyst Edward Meir said in a note.
Elsewhere, silver was steady at US$15.95 an ounce. The metal rose nearly 1.5% on Tuesday. Platinum was up 0.3% at US$903.49 and palladium rose 0.5% at US$675.45, after rising over 2% in the previous session. - Reuters
Limited time offer:
Just RM5 per month.
