Gold bounces on U.S. dollar but near four-month low

SINGAPORE Wed Dec 19, 2012 6:22am IST

A woman serves customers at a jewellery stand at a shopping mall in central Beijing December 6, 2012. REUTERS/David Gray

A woman serves customers at a jewellery stand at a shopping mall in central Beijing December 6, 2012.

Credit: Reuters/David Gray

Related Topics

SINGAPORE (Reuters) - Gold regained strength on Wednesday as the U.S. dollar weakened against the euro, but the metal was still within sight of its weakest in nearly four months after signs of progress in the U.S. fiscal talks dented its safe haven appeal.

FUNDAMENTALS

* Gold added $5.85 an ounce to $1,675.39 by 0032 GMT after falling to $1,661.01 on Tuesday, its lowest since August on technical selling and growing hopes U.S. legislators are closer to reaching a deal that would avert a fiscal crisis next month.

* U.S. gold futures for February rose $6.20 an ounce to $1,676.90.

* U.S. House of Representatives Majority Leader Eric Cantor said he expects a vote on a Republican offer to avert the "fiscal cliff" on Thursday, and he expects to have enough votes to pass the measure.

MARKET NEWS

* The euro hovered at multi-month highs against the dollar and yen on Wednesday, having extended recent gains as tentative signs of progress in the U.S. fiscal talks bolstered demand for riskier assets. A weaker dollar makes dollar-priced gold cheaper for holders of other currencies.

* Japan's Nikkei share average is set to test eight-month highs above 10,000 on Wednesday as investor appetite is boosted by signs of progress in the U.S. fiscal talks and expectations of aggressive monetary easing under the new Japanese government.

(Reporting by Lewa Pardomuan; Editing by Ed Davies)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage