Gold price slips as investors look to US data for stimulus clues

PTI Posted online: Monday, Dec 02, 2013 at 0000 hrs
Singapore : Gold dropped on Monday, with investors jittery ahead of key US data this week that could provide clues on when the Federal Reserve will begin scaling back its monetary stimulus.

FUNDAMENTALS

Spot gold had fallen 0.3 percent to $1,247.73 an ounce by 0028 GMT, after posting its biggest monthly loss since June.

US data including nonfarm payrolls, third quarter GDP and manufacturing PMI will be released this week, giving more insight into the strength of the economy.

A strong economic recovery could prompt the Fed to begin cutting back its $85 billion in monthly bond purchases soon. The central bank next meets on Dec. 17-18, when it could decide the fate of its stimulus.

The volume of gold transferred between accounts held by bullion clearers rose by 7 percent in October to an average of 19.8 million ounces a day, the London Bullion Market Association said on Friday.

ANZ cut its precious metal price forecasts for 2014 on Friday, citing softer-than-expected demand and negative market sentiment.

Gold trade between Turkey and Iran will resume, albeit at lower levels than last year, once sanctions on Iran are eased, Iran's ambassador to Turkey said on Friday.