Gold hits three-week high, awaits key U.S. data

BY

Gold hit a three-week high on Tuesday, helped by safe-haven buying and good physical demand, with investors awaiting the release of U.S. economic data that may set bullion's direction.

Brighter technicals and firm oil also lifted buying. Other metals also gained, with platinum rising to a three-week high and silver rising to its highest level in more than two weeks.

Gold remains remarkably well bid despite some dollar strength. It is playing a little bit of safe-haven role, physical demand is excellent and production is looking pretty sloppy .

Despite high prices, producers can't even maintain the 2,500-tonne production level. So from a fundamental point of view, the market is quite good.

Gold output in South Africa, the world's biggest producer, fell 7.5 percent in the second quarter from a year ago, while Russia produced 76.9 tonnes of gold in the first seven months of 2007, 1.9 percent lower from last year.

Traders said brisk seasonal demand from India, the world's largest consumer, boosted physical trading in Asia and helped offset scrap sales. Gold imports to Turkey, jumped 40 percent to 178 tonnes in the first eight months of the year.   

The market looks strong on charts after breaking through $670. The market will watch whether gold can retain the level and rise towards the next psychological point of around $677.

Investors awaited U.S. data this week, including the Institute for Supply Management's manufacturing activity in August on Tuesday, the Federal Reserve's beige book summary of the economy's performance on Wednesday and the monthly non-farm payrolls report on Friday.

JKL

thanks

hwind33

看不懂。同样谢谢。