1. Gold drops for 4th session on recovery in stock markets

Gold drops for 4th session on recovery in stock markets

Gold lost more ground on Wednesday as a rebound in US and European equity markets reduced some of the precious metal's safe haven appeal with additional pressure from a strengthening greenback.

By: | Singapore | Updated: January 13, 2016 7:10 AM
gold import Spot gold slid 0.3 percent to ,086.9 an ounce by 0011 GMT and U.S. gold futures gained 0.1 percent to ,086.7. (Reuters photo)

Gold lost more ground on Wednesday as a rebound in US and European equity markets reduced some of the precious metal’s safe haven appeal with additional pressure from a strengthening greenback.

FUNDAMENTALS

* Spot gold slid 0.3 percent to $1,086.9 an ounce by 0011 GMT and US gold futures gained 0.1 percent to $1,086.7.

* A late rebound in energy and biotech shares helped push the S&P 500 to a second straight day of gains on Tuesday, while Apple and other technology shares also boosted the market. The pan-European FTSEurofirst 300 index climbed 1.1 percent after four sessions of declines.

* The metal’s rally in early January to a nine-week top has run out of steam as expectations of further U.S. interest rate increase lowers demand for the non-interest-paying asset, while boosting the dollar.

* The dollar rose for a third straight session on Tuesday as gains on Wall Street and calmer financial markets enhanced appetite for currencies that offer higher yield.

* The Fed raised rates in December and attention has shifted to how many hikes will follow in 2016.

* Holdings of the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 2.1 tonnes on Monday, data from the fund showed.

* Among other precious metals, palladium fell for a third straight session to $467.30 an ounce after sliding to a 5-1/2 year low of $449.55 an ounce on Tuesday.

* Silver was almost unchanged at $13.795 an ounce, while platinum lost 0.2 percent to $835.1 an ounce.

MARKET NEWS

* US and European stock investors bought beaten-down shares on Tuesday, at least temporarily looking past another steep drop in oil prices that briefly sent US crude below $30 a barrel.

* Oil fell briefly below the widely watched $30-per-barrel level on Tuesday, extending a selloff that has sliced almost 20 percent off prices this year amid deepening concerns about fragile Chinese demand and the absence of output restraint.

 

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