Gold flat, weaker dollar, central bank purchases support

Nov 22 2012, 10:03 IST
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Gold traded flat on Thursday, supported by central bank purchases of the precious metal and by a weaker dollar.  (Reuters) Gold traded flat on Thursday, supported by central bank purchases of the precious metal and by a weaker dollar. (Reuters)
SummaryGold traded flat on Thursday, supported by central bank purchases of the precious metal and by a weaker dollar.

Gold traded flat on Thursday, supported by central bank purchases of the precious metal and by a weaker dollar as European leaders assured investors that a deal on a bailout for Greece was imminent.

FUNDAMENTALS

Spot gold was little changed at $1,729.14 an ounce by 0030 GMT.

U.S. gold traded flat at $1,729.70.

But spot silver rose to $33.43, its highest in more than a month

Brazil, Kazakhstan and Turkey raised their official gold holdings in October, while the euro area trimmed its gold reserves, data from the International Monetary Fund showed.

Though Greece's international lenders failed for the second week to free up new aid for Greece, European leaders said they were close to reaching a deal.

U.S. manufacturing grew in November at its quickest pace in five months, with a rise in domestic demand hinting that factories could provide a boost to economic growth in the fourth quarter.

Israel and the Islamist Hamas movement ruling the Gaza Strip agreed on Wednesday to an Egyptian-sponsored ceasefire to halt an eight-day conflict that killed 162 Palestinians and fiveIsraelis.

MARKET NEWS

U.S. stocks finished modestly higher on Wednesday, with the S&P 500 up for a fourth session, although volume was one of the year's lowest on the day ahead of the Thanksgiving holiday.

The yen languished near eight-month lows versus the dollar on Thursday as investors gave it a wide berth on expectations of more policy action in Japan, while the revived hopes of a Greek loan deal saw the euro stage a dramatic turnaround.

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