Amwal Al Ghad English - 2015-07-20 07:51:04
The U.S dollar held firm in Asia on Monday as investors looked ahead to higher interest rates from the Federal Reserve, while gold slumped to five-year lows as a lack of global inflation left little to hedge against.
The precious metal XAU= ran into a wave of selling in Asia that drove it down almost 4 percent at one stage to as deep as $1,088.05 an ounce. It was last at $1,107.70.
"It looks like someone was taking advantage of the low liquidity environment at the moment. It's a bit of speculative selling going on," said Victor Thianpiriya, analyst at ANZ Bank in Singapore.
Nearly 900,000 lots were traded on a key contract XAU9999=SGEX on the Shanghai Gold Exchange, compared to less than 27,000 lots on Friday, Reuters data showed. Prior to Monday, volume for July had averaged less than 30,000 lots.
Activity was light elsewhere with Japan on holiday and a dearth of major data in the diary, leading to a cautious session for stocks in Asia. Financial spreadbetters expected European bourses to open with gains of 0.1 to 0.2 percent. More»