Gold price edges lower, decline in stock markets limits losses

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Singapore | Updated: January 14, 2016 8:27:53 AM

Asian shares skidded as markets took their cue from steep losses on Wall Street as an overnight rout in oil prices heightened worries about the global economy.

Gold prices todaySpot gold had fallen 0.1 percent to $1,092.25 an ounce by 0213 GMT and U.S. gold futures gained 0.5 percent to $1,092.5. (Reuters photo)

Gold edged lower on Thursday as the market paused after last session’s 0.6-percent gain, which was triggered by falling global equity markets and weakness in the US dollar.

Asian shares skidded as markets took their cue from steep losses on Wall Street as an overnight rout in oil prices heightened worries about the global economy.

“It is a bit of profit-taking at the moment,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. “The focus is on equity markets and currencies, Dow was down and we are seeing further pressure on Asian stock markets.”

Spot gold had fallen 0.1 percent to $1,092.25 an ounce by 0213 GMT and U.S. gold futures gained 0.5 percent to $1,092.5.

US stocks sank on Wednesday, pushing the S&P 500 to a close below 1,900 for the first time since September as investors grew anxious about weak energy prices, US corporate earnings and the global economy.

Sentiment soured for the greenback, which retreated from a one-week high against a basket of major currencies as US stocks fell.

The deepening slide in oil and concerns about China’s economy have rattled equity markets, which have failed to sustain any significant rallies in early 2016.

Chicago Federal Reserve Bank President Charles Evans said he was nervous about the potential effects of China’s slowdown on the US economy and about the possibility that inflation expectations may be slipping.

The Fed raised U.S. interest rates in December and attention has shifted to how many increases will follow in 2016. Rate hikes typically lower demand for non-interest-paying gold while boosting the dollar.

Among other precious metals, palladium gave up almost 1 percent to $479.76 an ounce, silver lost 0.1 percent to $14.121 an ounce, while platinum fell 0.2 percent to $845.66.

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