KUALA LUMPUR: Gold steadied on Monday as investors cashed in gains after upbeat Asian demand earlier lifted the metal to two-week highs, with expectations for a rise in US interest rates later this year keeping a lid on prices.

Spot gold was at $1,212.40 an ounce at 1505 GMT, little changed from late on Friday. US gold futures for April delivery were down $1.30 an ounce at $1,211.80.

Earlier spot prices rose to $1,223.20 an ounce, their highest since Feb 17, after an interest rate cut in Beijing lifted demand in China, the world’s second largest gold market.

Gold prices were supported by strength in the Asian physical markets overnight. Premiums for physical gold at the Shanghai Gold Exchange stayed firm at around $4-$5 an ounce over the global spot benchmark on Monday.

Top buyer India will introduce gold deposit accounts to utilise the 20,000 tonnes available within the country and launch a sovereign gold bond, but it kept the import duty at a record 10 per cent in a setback for jewellers.

Spot silver was down 0.4pc at $16.52 an ounce. Platinum was up 0.2pc at $1,187.15 an ounce, while palladium was up 1.2pc at $824.50 an ounce.

Published in Dawn March 3rd , 2015

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