Gold Down In Asia But More Upside Likely

Gold and silver both softened in Asia Wednesday aftercrushing and identifying gold hitting record and multidecade highs, respectively, in late New York trade. Both metals suffered some mild profit-taking after gold hit a record of $1,434.90 a troy ounce and silver a 31-year peak of $34.73/oz, but even higher levels look likely, said a Singapore based trader at international bank. "I can't help being bullish now.

We are heading into uncharted territory." Traders said Asian hours have been mundane for gold and silver this week because the Middle East related newsflow only starts to pick up when London comes in. Progress from here is still news-driven, with Nymex crude oil's push above $100/bbl overnight and the tense situation in Libya encouraging gold buying both as a safe haven and as an inflation hedge, said Darren Heathcote, head of trading at Investec in Sydney. "Record highs will increase interest in gold, but investors will want to see real conviction in this move...