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Asian gold higher in afternoon, keeps above US$285

HONG KONG: Asian spot gold rose on Tuesday in quiet trading after Japanese and Australian buying, with the price holding above the key US$285 level.

Gold bullion was quoted at US$285.90/286.40 per ounce late on Tuesday compared to London's previous close at US$285.25/85 on Monday.

US markets were scheduled to return on Tuesday after the Martin Luther King holiday.

"We saw Japanese buying and buying from Australian dealers. Otherwise the market was quiet," a trader said.

If the gold price can hold above US$285, the technical signs would be bullish and suggest a test of US$288, traders said.

But the price was likely to show little movement ahead of Britain's next gold auction of 25 tonnes on Tuesday, traders said.

"If the auction results are good, gold may take a look on the upside and could hit US$295, otherwise I would say US$280 was the target," a trader said.

But another trader said most in the market were taking a short position prior to the sale and that any rise in the gold price would have to wait until the end of the month.

Spot silver was quoted at US$5.12/15 an ounce after closing in London at US$5.10/13 on Monday.

Local tael gold was quoted HK$8 up at HK$2,652.

The carry over charge at the Chinese Gold and Silver Exchange Society was nil, unchanged from its previous fix.-Reuters