KONTAK PERKASA FUTURES – Gold held above $1,200 an ounce after rallying for two days to the highest level in almost a week as slumping equity markets and concern that Greece may quit the euro area spurred demand for a haven.
Bullion for immediate delivery traded at $1,203.64 an ounce at 9:34 a.m. in Singapore from $1,204.86 yesterday, when prices rose to $1,207.60, the highest since Dec. 30, according to Bloomberg generic pricing. The metal has rallied from a one-month low of $1,168.34 on Jan. 2 even as oil prices and the euro extended losses.
Assets in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, expanded yesterday for the first time in two weeks, rising from the lowest level since September 2008. The U.S. Mint sold 42,000 ounces of gold coins yesterday compared with 18,000 ounces in all of December. In China, the largest consumer, volumes for the benchmark spot contract rose yesterday to the highest level in a week.
Asian stocks extended a global rout today as oil in New York slid below $50 a barrel for the first time since April 2009 on speculation that rising global output will worsen a glut. The euro is near an almost nine-year low as campaigning began in Greece for a Jan. 25 election that Prime Minister Antonis Samaras has said may lead to an exit from the 19-member region should the main opposition Syriza party win.