Gold prices drifts around $1,575/oz, Wall Street rally weighs
Gold hovered around $1,575 an ounce on Wednesday, languishing in a recent range as a strong stock market performance drew the attention of investors who have become more confident in the economic growth outlook.
The Dow Jones industrial average hit a record high in the previous session, boosted by latest data showing growth in the huge U.S. services sector rising to its fastest pace in a year, adding to evidence of economic recovery.
FUNDAMENTALS
Spot gold edged up 0.1 percent to $1,577.05 announced by 0037 GMT, drifting within a recent range between $1,564 and $1,587. U.S. gold was also up 0.1 percent, to $1,576.80. South Korea's central bank said on Wednesday it bought 20 tonnes of gold in February in the fifth purchase of the metal in less than two years, taking total holdings to 104.4 tonnes.
More and more major banks are breaking away from the consensus for continued gains in gold prices as an incipient return to growth of the global economy has undermined the argument for holding the precious metal. Holdings of SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, dropped for an eleventh consecutive session to a 16-month low of 1,244.855 tonnes on March 5. The fund had seen an outflow of 105.965 tonnes so far this year, compared with a 96.25-tonne inflow in 2012.
The U.S. Congress is moving rapidly to pass legislation funding the federal government through Sept. 30, as Senate leaders on Tuesday expressed eagerness to avoid any threat of agency
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