By Glenys Sim
Nov. 12 (Bloomberg) -- Gold rose for the third time in four days as physical buying increased after the metal declined yesterday amid a drop in global equities and crude oil.
Asian stocks fell to a two-week low on a deteriorating outlook for company earnings renewing speculation a global recession will cut demand for precious metals and raw materials.
``We see physical demand emerge when the price falls below $750,'' Ronald Leung, director, Lee Cheong Gold Dealers (Hong Kong) Ltd., said by phone from Hong Kong. ``There's still a lot of uncertainty regarding the global economy and more people are looking to store some gold in their safes.''
Gold for immediate delivery rose as much as 0.9 percent to $737.92 an ounce, and traded at $737.55 at 2:27 p.m. in Singapore. Bullion fell as low as $727.51 an ounce yesterday. Silver for immediate delivery was 0.9 percent higher at $9.83 an ounce.
``Gold will continue to trade in the $720 to $770 range for a while,'' Leung said. ``The factors that have driven gold, oil, dollar, equities, in the past few months will continue to determine direction.''
The ICE futures exchange's U.S. Dollar Index, which tracks the greenback against six trading partners, fell for the first day in five as the euro and pound rebounded. Bullion is down 12 percent this year as the index climbed 13 percent.
Gold for December delivery climbed 0.5 percent to $736.20 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange at 2:34 p.m. in Singapore. Gold for October delivery in Tokyo lost 0.9 percent to 2,321 yen a gram ($739 ounce).
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
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