* Resilience above $1,700/oz reassures investors
* Drop in stocks, commodities exerts some pressure
* Markets brace for impact of Hurricane Sandy
By David Brough
LONDON, Oct 29 (Reuters) – Gold held near $1,710 an ounce on
Monday as concerns over the global growth outlook supported
demand for the metal as a store of value, but losses in the
broader financial markets kept up some pressure on prices.
Resilience above $1,700 an ounce, a level gold repeatedly
tested last week, has reassured buyers who had feared a deeper
correction after it fell to a more than six-week low at
$1,698.39 on Oct. 24, analysts said.
Spot gold was down 0.1 percent at $1,708.96 an ounce
at 1537 GMT, while U.S. gold futures for December
delivery were down $2.40 an ounce at $1,709.50. It is settling
into a range after running into support last week, traders said.
“I don’t think we’ll break too far out from $1,700 or
$1,715,” the Bank of Nova Scotia’s head of precious metals Simon
Weeks said. “There’s good physical interest on the dips.”
Spot gold is heading for its biggest monthly loss since May,
having hit an 11-month peak above $1,795 an ounce on Oct. 5
after the Federal Reserve unveiled its latest stimulus programme
of purchasing mortgage-backed debt.
Continued…
