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Asia gold higher in afternoon on Australia buying

HONG KONG: Asian spot gold rose in quiet trading on Friday after buying by professionals in Australia and was expected to stay in its recent range.

Gold bullion was quoted at US$291.90/292.40 per ounce late on Friday compared to New York's previous close at US$290.90/291.90 on Thursday.

"There was some buying from Sydney dealers, but at around the US$293 level some selling orders, probably profit-taking, stopped the market from moving higher," a trader said.

Volume was thin and the price was likely to be rangebound between US$285-295 in the short-term, he said.

"People are losing interest. Other markets are more interesting, for example, stocks," the trader said.

Little movement was expected ahead of the COMEX options expiry later on Friday because of the reduced open interest, traders said.

In silver, investors awaited word on the holdings of US investor Warren Buffett from the annual statement of his investment company due out on the Internet this weekend.

Market rumours have circulated that Buffett liquidated his large silver investment, which in 1998 amounted to 130 million ounces, or about 16 percent of world supply.

But any comments on silver in the annual statement by Buffett's Berkshire Hathaway was unlikely to have a big impact, a trader said.

"If they were going to liquidate, they would have done it already. If the rumours of Buffett selling are confirmed, people may cover their positions," he said. -Reuters