Gold price inches up but on track for biggest monthly fall since November

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Bangalore | Published: May 31, 2016 8:06:26 AM

Gold edged higher in early trade on Tuesday, after falling to a 3-1/2 month low in the prior session, but bullion remained on track for its biggest monthly decline since November even as the dollar softened against the yen.

goldSpot gold was up 0.5 percent to 1211.11 per ounce by 0049 GMT. The safe haven asset fell as much as 1 percent to ,199.60 an ounce, its lowest since Feb. 17 on Monday. (Reuters)

Gold edged higher in early trade on Tuesday, after falling to a 3-1/2 month low in the prior session, but bullion remained on track for its biggest monthly decline since November even as the dollar softened against the yen.

FUNDAMENTALS

* Spot gold was up 0.5 percent to 1211.11 per ounce by 0049 GMT. The safe haven asset fell as much as 1 percent to $1,199.60 an ounce, its lowest since Feb. 17 on Monday.

* U.S. gold was down 0.2 percent at 1211.20.

* Spot gold is on track to register its biggest monthly decline since November, having fallen 6.3 percent so far in May.

* Asian shares wobbled in early trade on Tuesday and were on track for a monthly loss, while the dollar edged away from recent peaks scaled on heightened expectations the U.S. Federal Reserve will raise interest rates as soon as next month.

* MSCI’s broadest index of Asia-Pacific shares outside Japan  was flat in early trading, ending more than 2 percent lower for the month.

* Against the yen, the dollar slipped 0.2 percent to 110.86  after Japan’s solid industrial output data. However, the U.S. dollar’s index against a basket of six major currencies  held steady.

* Having dumped Asian shares on resurgent worries about China’s economy, the spectre of more aggressive U.S. rate rises is now forcing global investors to sell the region’s bonds and currencies.         * Japanese industrial output unexpectedly rose 0.3 percent in April, government data showed on Tuesday, suggesting production was holding up despite weak exports and the hit from a series of earthquakes in southern Japan during the month.

* St. Louis Federal Reserve President James Bullard said on Monday global markets appear to be “well-prepared” for a summer interest rate hike from the Fed, although he did not specify a date for the policy move.

* Workers at South Africa’s Sibanye platinum mine in Rustenburg will return to work this evening following a wildcat strike on Friday, the Association of Mineworkers and Construction Union (AMCU) said on Monday.

 

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