Gold lost more ground on Wednesday as a rebound in US and European equity markets reduced some of the precious metal's safe haven appeal with additional pressure from a strengthening greenback.
Gold lost more ground on Wednesday as a rebound in US and European equity markets reduced some of the precious metal’s safe haven appeal with additional pressure from a strengthening greenback.
* Spot gold slid 0.3 percent to $1,086.9 an ounce by 0011 GMT and US gold futures gained 0.1 percent to $1,086.7.
* A late rebound in energy and biotech shares helped push the S&P 500 to a second straight day of gains on Tuesday, while Apple and other technology shares also boosted the market. The pan-European FTSEurofirst 300 index climbed 1.1 percent after four sessions of declines.
* The metal’s rally in early January to a nine-week top has run out of steam as expectations of further U.S. interest rate increase lowers demand for the non-interest-paying asset, while boosting the dollar.
* The dollar rose for a third straight session on Tuesday as gains on Wall Street and calmer financial markets enhanced appetite for currencies that offer higher yield.
* The Fed raised rates in December and attention has shifted to how many hikes will follow in 2016.
* Holdings of the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 2.1 tonnes on Monday, data from the fund showed.
* Among other precious metals, palladium fell for a third straight session to $467.30 an ounce after sliding to a 5-1/2 year low of $449.55 an ounce on Tuesday.
* Silver was almost unchanged at $13.795 an ounce, while platinum lost 0.2 percent to $835.1 an ounce.
* US and European stock investors bought beaten-down shares on Tuesday, at least temporarily looking past another steep drop in oil prices that briefly sent US crude below $30 a barrel.
* Oil fell briefly below the widely watched $30-per-barrel level on Tuesday, extending a selloff that has sliced almost 20 percent off prices this year amid deepening concerns about fragile Chinese demand and the absence of output restraint.