PRECIOUS-Gold hovers below 1-week high; US data, Fed support
SINGAPORE, Jan 31 (Reuters) - Gold was little changed on Thursday, hovering below a one-week top hit in the previous session when data showing a surprise contraction in the U.S. economy and the Federal Reserve's decision to continue its bond-buying plan supported bullion. FUNDAMENTALS * Spot gold was nearly flat at $1,677.44 an ounce by 0032 GMT, off a near one-week high of $1,683.39 in the previous session. * U.S. gold inched down 0.2 percent to $1,677.10. * The U.S. economy unexpectedly contracted in the fourth quarter, but analysts said there was no reason for panic given that consumer spending and business investment picked up. * The Federal Reserve on Wednesday left in place its monthly $85 billion bond-buying stimulus plan, arguing the support was needed to lower unemployment even as it indicated a recent stall in U.S. economic growth was likely temporary. * Friday's U.S. nonfarm payrolls data is in focus. Hiring by U.S. employers likely held steady in January, pointing to modest growth in the economy despite worries that budget battles in Washington could derail the recovery. * India's government does not currently plan additional taxes or curbs on imports of gold as it waits to see the impact of recent tax hikes, a top finance ministry official told Reuters on Wednesday. * Commodities have decisively broken their lock-step with other assets, which lasted from 2008 to 2012, and now lower volatility and an expected end to central bank money printing could ensure the correlation does not return. * For the top stories on metals and other news, click , or MARKET NEWS * U.S. stocks fell on Wednesday after the Federal Reserve said in its latest statement that economic growth had stalled but indicated the pullback was likely temporary. * The euro held near a 14-month peak against the dollar and a 2-1/2 year high versus the yen on Thursday, having risen solidly as investors expect central banks in both the United States and Japan to keep an aggressive easing stance. DATA/EVENTS (GMT) 0500 Japan Construction orders 0500 Japan Housing starts 0700 Germany Retail sales 0745 France Producer prices 0855 Germany Unemployment rate 1300 Germany Preliminary CPI 1330 U.S. Weekly jobless claims 1330 U.S. Personal income 1445 U.S. Chicago PMI PRICES Precious metals prices 0032 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1677.44 0.74 +0.04 0.17 Spot Silver 32.04 0.02 +0.06 5.81 Spot Platinum 1681.74 -0.50 -0.03 9.56 Spot Palladium 746.47 -0.28 -0.04 7.87 COMEX GOLD FEB3 1677.10 -2.80 -0.17 0.08 185 COMEX SILVER MAR3 32.06 -0.12 -0.36 6.05 575 Euro/Dollar 1.3570 Dollar/Yen 91.05 COMEX gold and silver contracts show the most active months (Reporting by Rujun Shen; Editing by Himani Sarkar)
- Tweet this
- Share this
- Digg this
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
Trending On Reuters
The government made a push on Wednesday to bolster its strained finances, offering to sell a stake in miner Coal India and more mobile phone airwaves as it aimed to deliver on a promise to trim its fiscal deficit. Full Article