NDTV Profit

Gold Inches Up on Softer Equities But Below 12-Week High

Oil prices at near six-year lows also did not help gold, though they did rebound on Wednesday in their biggest surge in two-and-a-half years as traders turned away from the bearish pressures of a worldwide glut to cover themselves on expiring options.
EMAIL
COMMENTS
Gold Inches Up on Softer Equities But Below 12-Week High

Singapore: Gold ticked up on Thursday after Asian equities mostly extended falls on global growth concerns, but the metal stayed below a 12-week high as a sell-off in commodities took a toll.

FUNDAMENTALS

Spot gold rose 0.1 per cent to $1,230.86 an ounce by 0045 GMT.

The metal rose to a high of $1,244 on Wednesday, its highest since Oct. 23, before paring gains to close flat.

Gold was sold off along with copper, which slid to a 5-1/2-year low on Wednesday after the World Bank cut its global growth forecast.

Oil prices at near six-year lows also did not help gold, though they did rebound on Wednesday in their biggest surge in two-and-a-half years as traders turned away from the bearish pressures of a worldwide glut to cover themselves on expiring options.

The bearish mood towards commodities failed to offset weak US retail sales data that would have typically boosted safe-haven bids for the metal.

US retail sales recorded their largest decline in 11 months in December as demand fell almost across the board, tempering expectations for a sharp acceleration in consumer spending in the fourth quarter.

The dollar nursed losses early on Thursday, having retreated across the board after a surprisingly big fall in US retail sales pulled US yields sharply lower.

Gold is facing a test of strength after an early January rally lifted it back towards a band of resistance above $1,250, a successful break of which could indicate it has bottomed out at its 2014 low.

Struggling gold miners are turning increasingly to alternative sources of finance for funds as banks and equity investors shy away.

MARKET NEWS

Securities around the world fell on Wednesday after the World Bank cut its economic growth forecasts for 2015 and 2016, with stocks down across regions and copper suffering its biggest one-day drop in more than three years.

Copyright: Thomson Reuters 2015



For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
ALSO READ WhatsApp Keen To Plug Into India's Digital Commerce Play

Advertisement

Advertisement

GAINERS / LOSERS

Advertisement