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

COAL SCAM

REUTERS SHOWCASE

Reliance Projects

Reliance Projects

Exclusive: Reliance plans $13 billion projects including new refinery.  Full Article 

Pharma Sector

Pharma Sector

In race for bigger margins, drug makers willing to lose the India "advantage".  Full Article 

Low Stocks

Low Stocks

Indian power station coal stocks lowest since 2012 blackouts.  Full Article 

Markets This Month

Markets This Month

Tata Motors, M&M top Sensex gainers  Full Article 

Google Drones

Google Drones

Google is testing unmanned drones to deliver anything from dog food to medicine.  Video 

#RiceBucketChallenge

#RiceBucketChallenge

In India, rice replaces ice in bucket challenge.  Full Article 

Reuters India Mobile

Reuters India Mobile

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