Gold extends losses on euro zone concerns; China data eyed

SINGAPORE Fri Feb 8, 2013 6:46am IST

Gold bullion coins known as Krugerrands are pictured in the mint where they are manufactured in Midrand outside Johannesburg October 3, 2008. REUTERS/Siphiwe Sibeko/Files

Gold bullion coins known as Krugerrands are pictured in the mint where they are manufactured in Midrand outside Johannesburg October 3, 2008.

Credit: Reuters/Siphiwe Sibeko/Files

Related Topics

SINGAPORE (Reuters) - Gold fell further on Friday as the euro weakened on renewed concerns over the health of the euro zone economy, while investors eyed China trade data for more trading cues.

China's economic rebound should show signs of strengthening when the first hard economic numbers of the year are released, although distortions caused by the Lunar New Year holiday will make it difficult to gauge momentum.

FUNDAMENTALS

* Gold fell $2.25 an ounce to $1,668.44 by 0050 GMT, but prices were still headed a slight gain this week -- its second straight weekly rise. U.S. gold futures were at $1,669.50 an ounce, down $1.80 .

* Platinum and palladium extended losses, having rallied to their highest level since September 2011 earlier this week on hopes of a better economic outlook.

* The European Central Bank will monitor the economic impact of a strengthening euro, ECB President Mario Draghi said on Thursday, feeding expectations the climbing currency could open the door to an interest rate cut.

* Draghi said the economic weakness in the euro zone was expected to prevail in the early part of 2013 but that later in the year, activity should gradually recover.

* China's gold production rose for a sixth consecutive year and hit a record 403 tonnes in 2012, keeping its ranking as the world's largest bullion producer, the Shanghai Securities News said on Thursday.

MARKET NEWS

* The euro hovered near two-week low on Friday after the ECB chief said he would monitor the impact of the currency's strength, making more straightforward remarks on the exchange rate than many had expected.

* U.S. crude steadied under $96 per barrel, weighed by higher domestic supplies, which may be aggravated by the possible delayed restart of BP's Indiana refinery.

(Reporting by Lewa Pardomuan; Editing by Himani Sarkar)

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

Market Eye

REUTERS SHOWCASE

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Photo

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Mircosoft Results

Microsoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Photo

Food Scandal

Five held in China food scandal probe, including head of Shanghai Husi Food   Full Article 

Reuters India Mobile

Reuters India Mobile

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