Gold languishes near seven-month low on Fed worries

SINGAPORE Thu Feb 21, 2013 6:27am IST

An employee arranges jewellery at a window display in a shop at the Gold Souq in Dubai, January 10, 2013. REUTERS/Ahmed Jadallah/Files

An employee arranges jewellery at a window display in a shop at the Gold Souq in Dubai, January 10, 2013.

Credit: Reuters/Ahmed Jadallah/Files

Related Topics

SINGAPORE (Reuters) - Gold rebounded half a percent on Thursday, but remained near a seven-month low hit in the previous session on worries that the Federal Reserve may stop or slow its bond buying programme.

Gold fell together with other commodities, amid speculation that a hedge fund had been forced to liquidate positions across metals and oil markets.

FUNDAMENTALS

* Spot gold gained nearly half a percent to $1,569.26 an ounce by 0034 GMT, after falling to $1,558.24 in the previous session, its lowest since last July. It fell 2.6 percent on Wednesday, posting the biggest daily drop in a year.

* U.S. gold fell 0.6 percent to $1,569.20.

* A number of Federal Reserve officials think the central bank might have to slow or stop buying bonds before seeing the pickup in hiring the program is designed to deliver, according to minutes of the central bank's policy meeting last month.

* India's trade ministry has recommended suspension of gold jewellery imports from Thailand, which are taxed at only 1 percent under a bilateral agreement while such imports from other countries are taxed at 10 percent.

* Anglo American Platinum (Amplats) AMJS.J said persistent labour unrest is jeopardising investment in South Africa and warned that talks with government and unions may not lead to a reduction in its planned job cuts.

* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, slumped 1.57 percent from the previous session to 1,299.164 tonnes on Feb 20, the lowest in more than five months.

* Spot silver was nearly flat at $28.55, having fallen to a six-month low of $28.26 in the previous session.

* Spot platinum extended losses to the third straight session, down 0.7 percent to $1,632.24. Spot palladium fell half a percent to $733.97, after falling more than 3 percent in the previous session -- its sharpest daily decline in nearly four months.

MARKET NEWS

* The U.S. dollar held firm on Thursday, having enjoyed its biggest one-day gain in seven months against a currency basket as commodities and U.S. equities slid on rumours of a hedge fund in trouble.

* U.S. stocks fell the most in three months and a key gauge of market volatility spiked on Wednesday after minutes from the U.S. Federal Reserve's most recent meeting suggested the central bank may slow or stop buying bonds sooner than expected.

(Reporting by Rujun Shen; Editing by Richard Pullin)

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

Public Health

REUTERS SHOWCASE

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay"  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

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