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  • Gold likely to look up in the coming days

    Published on August 6, 2010

    Drop in dollar and China’s move to relax rules on trading the yellow metal Says Sangeeth Cherian

    • Gold is poised for its first weekly advance in almost two months as the dollar declined for the ninth straight week against major currencies and investors priced in China’s move to relax rules on trading the metal.
    • Gold for immediate delivery was little changed at $1,195.01 an ounce at 10:27 a.m. in Singapore, taking this week’s gain to 1.2 percent, the first advance since the week ended June 18. December-delivery futures were up 1 percent this week at $1,197 an ounce, the first increase in a month.
    • “Gold could retain strength although it may face some selling pressure after recent gains,” said Park Hyun Seon, Seoul-based trader with Eugene Investment & Futures Co. “Despite some uneasiness about falling fund inflows, gold is well-supported psychologically from the dollar’s weakness and China’s relaxation of rules on gold trading.”

    China unveiled plans this week to let more banks import and export gold and give foreign companies greater access to trading. The dollar on Aug. 3 slipped to a three-month low against the euro. Bullion, which advanced to a record $1,265.30 an ounce on June 21, usually moves inversely to the greenback

    Sangeeth can be contacted @ sangeeth.cherian @apnnews.com