PRECIOUS-Gold hovers below 1-week high; US data, Fed support

Thu Jan 31, 2013 6:20am IST

Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

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)

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Reuters India Mobile

Reuters India Mobile

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