Gold Bounces Back In Tandem With Equities

Gold futures opened higher in the Asia electronic trades today with the equities trading higher on back of solid gains in US yesterday.

Stocks climbed sharply across Asia as investors looked to possible improvement in the global economy, with technology firms lifted by U.S. results overnight. Japans Nikkei Stock Average rose 0.8%, while Australias S&P/ASX 200 index climbed 1.1% and South Koreas Kospi gained 1.4%. In China, Hong Kongs Hang Seng Index jumped 1.2%, though the Shanghai Composite Index lagged, with an advance of just 0.1%.

U.S. stocks had ended higher Wednesday, with investors reacting to a surge in June housing starts, technology-sector earnings, and broadly reassuring comments from Federal Reserve Chairman Ben Bernanke.

Bernanke, in his second day of testimony to Congress, repeated earlier comments that the central bank stood ready to support the U.S. economy but that he doesnt expect it to slip back into recession.

Gold for August delivery is trading up $8 at $ 1578 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it ended lower by $18.7 or 1.2%, to end at $1,570.8 an ounce. Last week, gold gained 0.8%. [ News Via ]

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