Gold inches higher towards $1,150/oz on continued demand

The spot gold price creeped higher towards $1,150 per oz during Asian trading hours on Thursday December 29 amid support from buyers.

The spot gold price was recently quoted at $1,148.05/1,148.35 per oz, up $5.70 on the previous close. Trade has ranged from $1,142.45 to $1,148.75 so far.

The spot gold price has inched higher since last Friday supported by bargain hunting in Asia after the price hit as low as $1,122.90 per oz, the lowest since February 1.

Chinese demand had continued to prop up gold and help the yellow metal punch through $1,140 per oz on Wednesday, MKS Group said on Thursday morning.

Quiet conditions can be expected today with the recent $1,130-1,150 per oz range for gold, the broker added.

Support has also come from a softer US dollar index amid expectations of slower US economic growth in the fourth quarter.

Last week, economists at the New York Federal Reserve estimated US GDP growth of 1.8% in the fourth quarter of this year and first quarter of next year, while the Atlanta Federal Reserve Bank’s latest forecast for fourth quarter’s GDP growth was at 2.5%. The forecast growths slow from the US final third quarter GDP growth of 3.5%.

The US dollar index was down 0.14% to 103.10 recently on Thursday.

In other commodities, the Brent crude oil spot price had recently risen 0.47% to $56.15 per barrel.

In equities, the Shanghai Composite has slipped 0.38% to 3,090.54 so far today.

In the other precious metals, the spot silver price increased $0.105 to $16.085/16.105 per oz. Platinum gained $6 to $902/907 per oz, and palladium rose $4 to $667/672 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 268.35 yuan ($39) per gram, and the June silver was at 4,083 yuan per kg.

(Editing by Kyle Docherty)