Gold steady; but firm US dollar, equities weigh

Aug 27 2014, 10:04 IST
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U.S. gold was flat at $1,283.00 an ounce. (Reuters) U.S. gold was flat at $1,283.00 an ounce. (Reuters)
SummaryUS and European Central Bank dragged on the metal as they boosted the appeal of the U.S. dollar and equities.

Bullion was little changed on Wednesday, but strong U.S. economic data and expectations of more stimulus from the European Central Bank dragged on the metal as they boosted the appeal of the U.S. dollar and equities.

FUNDAMENTALS

Gold was steady at $1,282.20 an ounce by 0038 GMT, having jumped about 1 percent on Tuesday on chart-based buying before paring gains. Prices hit a two-month low of $1,273.06 on Aug. 21 on speculation of an eventual increase in U.S. interest rates.

U.S. gold was flat at $1,283.00 an ounce.

The Conference Board's measure of U.S. consumer confidence rose more than expected in August, hitting its highest level since October 2007. Separately, orders for long-lasting U.S. manufactured goods posted their biggest gain on record in July.

Speculation is growing that the European Central Bank is preparing a programme of large-scale asset purchases to weaken the euro and try to jump-start growth in the struggling euro zone.

A ceasefire agreement between Israel and the Palestinians aimed at ending their seven-week conflict in Gaza went into effect on Tuesday and joyous Palestinians streamed into the streets of the battered enclave to celebrate.

Newmont Mining Corp has withdrawn an international arbitration filing against the Indonesian government, government and company officials said on Tuesday, indicating a possible breakthrough in a seven-month dispute that halted exports.

President Barack Obama vowed "justice will be done" against the Islamic State killers of American journalist James Foley on Tuesday as the United States sought to identify targets for potential airstrikes in Syria. For the top stories on metals and other news, click or

MARKET NEWS

The euro was close to cracking on Wednesday as feverish speculation of further policy stimulus in the euro zone drove bond yields to all time lows and gave a fillip to stocks globally.

U.S. crude held near $94 a barrel on Wednesday following overnight gains on supportive data that showed a drop in crude inventories last week.

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