Gold in Asia up on weak US GDP, sits near 3-year low

 Gold edged higher on Thursday after a 12 % slide since the beginning of last week, as soft data on US economic growth eased fears of a quick end to the Federal Reserve's monetary stimulus.

 

FUNDAMENTALS

 

* Spot gold rose 0.7 % to $1,233.36 an ounce by 0012 GMT, after a 4 % fall on Wednesday that took the metal to $1,221.80, its lowest since August 2010. US gold rose about $4 to $1,233.40, also near 3-year lows.

 

* Bullion has been declining since last week after Federal Reserve Chairman Ben Bernanke laid out a strategy to wind down the bank's $85 billion monthly bond purchases in the next few months.

 

* However, data on Wednesday showed US gross domestic product expanded at a 1.8 % annual rate in the quarter, compared with the previously reported 2.4 % pace, lending a cautionary note on economic recovery.

 

* Gold is still down more than 26% for the year and is headed for its worst quarterly performance since at least 1968.

 

* Gold is braced for more pain with chart patterns showing the precious metal's latest fall exposing prices to deeper losses.

 

* The price of silver is set post its biggest quarterly drop on record after falling nearly a third since the end of March, hit by the weaker price of gold and subdued industrial demand.

 

* ABN Amro was the latest to pare its gold price forecasts, lowering its 2013 year-end gold forecast to $1,100 an ounce from $1,300 and 2014 year-end price to $900 from $1,000.

 

* Gold premiums doubled in India on Wednesday as suppliers struggled to meet demand after a ban on consignment imports, but futures prices fell to their lowest in more than a month as international gold prices fell due to a strong dollar.