Gold edges up, silver rises....

PRECIOUS-Gold edges up, silver rises; China data seen to support

Wed May 11, 2011 3:26am GMT

 

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http://af.reuters.com/article/metalsNews/idAFL3E7GB04920110511

* China April inflation higher than expected, industrial
output weaker

* Gold may rise to $1,531 -technicals [ID:nL3E7GB04M]

* Coming Up: Germany final CPI for April; 0600 GMT

 (Adds details, comments; updates prices) 

By Rujun Shen 

SINGAPORE, May 11 (Reuters) - - Gold held steady and silver
rose more than 1 percent on Wednesday, as concerns about China's
high inflation and waning economic growth are seen buoying
interest in precious metals. 

China's inflation in April was stronger than expected, at
5.3 percent on the year, while industrial output was
considerably weaker than forecast. [ID:nL3E7GB07V] 

High inflation and lower economic growth in China, the
world's second-largest economy, are likely to dampen risk
appetite and support interest in gold, though reaction to the
data was muted. 

Spot gold inched up 0.4 percent to $1,521.49 an ounce
by 0256 GMT, building on gains in the past three sessions. 

U.S. gold GCcv1 edged up 0.3 percent to $1,521.60. 

"Gold is generally benefiting from the return of confidence
from investors," said Darren Heathcote, head of trading at
Investec Australia. 

"They are very happy buying on the dip, as we see the same
old problems hanging around." 

Growing concern over Greece's fiscal status, dollar weakness
and high oil prices continues to fuel nervousness in the
financial markets, driving investors to seek safe haven in
bullion. [ID:nLDE7491FC] 

U.S. crude futures CLc1 hovered near $104 a barrel after
rising $1.33 in the previous session, supported by worries that
flooding could hit the U.S. Gulf Coast refining hub as well as
strong Chinese crude imports for April.  

While holdings in the SPDR Gold Trust remained unchanged at
a one-year low, holdings in the iShares Silver Trust , the
world's largest silver-backed exchange-traded fund, extended a
rise of  3 percent in the previous session and edged up 0.2
percent to a one-week high of 10,585.99 tonnes by May 10.
  

Spot silver rose by 1.6 percent to $39.06, on course
for a fourth straight session of gains. COMEX silver SIcv1
gained 1.4 percent to $39.04. 

Silver prices plunged more than 25 percent last week and
gold nearly 5 percent, prompting buying in the physical market
in Asia, dealers said. 

"We saw buying when gold dipped below $1,500 from China,
India and Indonesia, but not much scrap selling, as people are
still bullish on gold," said a Hong Kong-based dealer. 

Technical analysis echoed bullish sentiment in the physical
market, as it indicated that gold could rise to $1,531 in the
next 24 hours, said Wang Tao, a Reuters market analyst.
[ID:nL3E7GB04M] 

"It's not beyond reason for gold to reach another record
high, but the sell-off last week made some investors more
cautious," said Heathcote of Investec Australia. 

"They are not fully committed as yet and are more willing to
take profit after decent gains. So it may take a while to see a
new record." 

Platinum group metals rose in tandem with gold and silver.
Spot platinum edged up 0.3 percent to $1,798.99 an ounce
in its fourth day of rise, and spot palladium rose by 0.8
percent to $730.97. 
  
 Precious metals prices 0256 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1521.49    6.34   +0.42      7.19
  Spot Silver        39.06    0.61   +1.59     26.57
  Spot Platinum    1798.99    5.44   +0.30      1.78
  Spot Palladium    730.97    5.57   +0.77     -8.57
  TOCOM Gold       3967.00   51.00   +1.30      6.38        48876
  TOCOM Platinum   4736.00   49.00   +1.05      0.85        10035
  TOCOM Silver      101.60    4.00   +4.10     25.43         3130
  TOCOM Palladium  1918.00   31.00   +1.64     -8.54          378
  COMEX GOLD JUN1  1521.60    4.70   +0.31      7.05         7875
  COMEX SILVER JUL1  39.04    0.55   +1.44     26.18         5525
  Euro/Dollar       1.4388
  Dollar/Yen         80.87
  TOCOM prices in yen per gram. Spot prices in $ per ounce.
  COMEX gold and silver contracts show the most active months 

 
 (Reporting by Rujun Shen; Editing by Clarence Fernandez) 

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