Press "Enter" to skip to content

Gold near 4-month low as stocks, dollar weigh

image

Gold steadied around a 4-month trough on Wednesday, after falling nearly 1 per cent in the previous session due to a surge in global equities, while a stronger dollar piled pressure on the metal.

Spot gold was down 0.1 per cent at $1,286.38 per ounce, as of 0104 GMT. In the previous session, the metal sank to $1,272.70, its lowest since Dec. 27.

U.S. gold futures edged up 0.1 per cent to $1,278.10 an ounce.

Stocks around the globe rose on Tuesday to six-month highs as positive economic data in China and Germany boosted investor sentiment.

The euro sagged early on Wednesday following a report that some European Central Bank policymakers have expressed dovish views, with the market awaiting Chinese economic data for further cues.

Asian shares started cautiously on Wednesday as investors waited anxiously for a raft of Chinese data that might show policy stimulus is finally gaining traction in the world’s second-largest economy.

China is expected to report on Wednesday that economic growth slowed to its weakest pace in at least 27 years in the first quarter, as policymakers seek to head off a sharper slowdown that could stoke job losses.

Gold, a non-yielding asset for investors looking to hedge against times of economic and political uncertainty, loses appeal when interest-yielding equities rise.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.23 per cent to 752.27 tonnes on Tuesday from 754.03 tonnes on Monday.

All 12 of the U.S. Federal Reserve’s regional banks supported keeping steady the interest rate commercial banks are charged for emergency loans before the central bank’s last policy meeting, records from the discussions showed on Tuesday.

Japan’s Economy Minister Toshimitsu Motegi said on Tuesday that no agreement had been reached on individual trade issues with the United States after two days of talks with U.S. Trade Representative Robert Lighthizer.

Standard Chartered on Tuesday forecast the palladium market deficit widening in 2019 and 2020.

Source: Economic Times