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Asian gold closes higher after short-covering

HONG KONG: Asian spot gold closed higher in thin trading on Wednesday after buying by Asia players to cover short positions.

Bullion ended at US$293.00/75 an ounce against New York's US$291.30/292.30 close on Tuesday. It opened here at US$292.00/75.

"The softer US dollar against the yen pumped up short-covering interest in gold," said a dealer at a local investment house.

"Gold is likely to stay in a range and lacks clear direction," the dealer added.

"Some people are positive because the price is holding above US$290 levels, but it is hard to say if it is just an absence of strong selling."

Spot silver ended at US$5.08/11 an ounce after closing in New York at US$5.06/08 on Tuesday.

Local gold ended HK$7 lower at HK$2,713 a tael.

The carry over charge at the Chinese Gold and Silver Exchange Society dropped to -8.00 from its previous fix at -6.00.-Reuters