Gold Notches Slim Gains As Dollar Drifts

Gold futures notched slim gains in electronic trading Tuesday, with a softer dollar lending support to commodity markets.

Gold for December delivery  added $2.90, or 0.2%, to $1,767.40 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.

The precious metal declined $13.40, or 0.8%, on Monday to end at $1,764.60 an ounce on the Comex division of the New York Mercantile Exchange. Read: gold futures drop nearly 1%.

The metal is trading up nearly 6% this month as policy action by central banks in the U.S., Europe and Asia encouraged buyers to seek tangible assets amid fears of inflation.

Lynette Tan, senior investment analyst at Phillip Futures in Singapore said seasonal demand trends present further upside for the metal.

“Gold demand traditionally rises in the last quarter of the year in India and China, as consumers buy gold for festival celebrations and weddings,” she said. India and China are the world’s top two gold buyers.

A weaker greenback provided support in Asia trading Tuesday.

The ICE dollar index , which measures the U.S. unit against a basket of six major rivals, slipped to 79.451, from 79.552 in North American trade late Monday.

The wider metals complex followed gold higher, with December silver  up 11 cents, or 0.3%, to $34.09 an ounce.

Copper futures  for the same month’s delivery put on 2 cents, or 0.5%, to $3.75 a pound.

October platinum futures  gained $2.00, or 0.1%, to $1,624 an ounce.

Palladium for December delivery  inched up 15 cents to $645.65 an ounce, after slumping nearly 4% on Monday.

Marketwatch