1. Gold prices hit near four-week high, Fed meeting in focus

Gold prices hit near four-week high, Fed meeting in focus

Gold held steady early Tuesday after touching a four-week high in the prior session, with focus on a two-day U.S. Federal Reserve meeting that begins later in the day and on Britain's June 23 vote on whether to leave the European Union.

By: | Bangalore | Published: June 14, 2016 7:34 AM
Gold, Gold prices, Gold price today, gold price in India, gold rate, gold rate today Spot gold had dipped 0.1 percent to ,282.41 an ounce by 0058 GMT. Bullion touched a session-peak of ,287.0 on Monday, its highest since May 16. (Reuters)

Gold held steady early Tuesday after touching a four-week high in the prior session, with focus on a two-day U.S. Federal Reserve meeting that begins later in the day and on Britain’s June 23 vote on whether to leave the European Union.

FUNDAMENTALS

Spot gold had dipped 0.1 percent to $1,282.41 an ounce by 0058 GMT. Bullion touched a session-peak of $1,287.0 on Monday, its highest since May 16.

US gold edged 0.2 percent lower to $1,285.60

The Fed is set to meet on Tuesday and Wednesday, with market players waiting for clues about when the central bank might next look to move on interest rates.

US Treasuries are not as safe as investors assume, fund manager Michael Hasenstab said on Monday, as full employment and rising inflation put pressure on central bankers to raise rates.

Britain’s “Out” campaign widened its lead over the “In” camp ahead of the country’s June 23 referendum, according to two opinion polls published by ICM on Monday. A vote by Britain to leave the 28-member EU, dubbed “Brexit,” could tip Europe back into recession, putting more pressure on the global economy.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.27 percent to 896.30 tonnes on Monday, the highest since October 2013.

Gold priced in sterling rose to its highest since September 2013 on Monday as the British pound fell to an 8-week low against the dollar.

Kinross Gold Corp said on Monday a nearly three-week strike by unionized workers at its Tasiast mine in Mauritania ended on Saturday.

South Africa’s National Union of Mineworkers (NUM) has secured exclusive union rights for workers at platinum producer Royal Bafokeng Platinum (RBPlat), it said on Monday.

  1. G
    Geo
    Jun 14, 2016 at 11:12 am
    "Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.27 percent to 896.30 tonnes on Monday, the highest since October 2013."I keep seeing Reuters reference this questionable data point but how reliable are GLD's holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone ensures the GLD shares to be nothing more than paper at the end of the day. GLD also has a glaring audit loop in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund. Some other red flags I've stumbled upon, verified and welcome everyone else to verify for themselves:"Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.I remember there was a highly publicized visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities."
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