Gold rises as Italy vote uncertainty boosts safe-haven appeal

SINGAPORE Tue Feb 26, 2013 6:42am IST

A craftsman makes a gold ornament in Qionghai, Hainan province, February 21, 2013. REUTERS/China Daily

A craftsman makes a gold ornament in Qionghai, Hainan province, February 21, 2013.

Credit: Reuters/China Daily

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

SINGAPORE (Reuters) - Spot gold inched up on Tuesday, extending gains from the previous session as uncertainty over Italy's election results stoked fears of a resurgent euro zone debt crisis, boosting bullion's appeal as a safe-haven investment.

FUNDAMENTALS

* Spot gold had edged up 0.1 percent to $1,595.41 an ounce by 0034 GMT, extending gains into the fourth straight session.

* U.S. gold was up half a percent at $1,595.10.

* Election projections show that no party is likely to win a majority in the upper house of Italy's Senate, fuelling worries about revived political uncertainty in the euro zone's third-largest economy, which could reignite the debt crisis.

* Investors will closely watch U.S. Federal Reserve Chairman Ben Bernanke's testimony to Congress on Tuesday and Wednesday, to seek clues on the Fed's attitude on its monetary policy.

* Likely government budget cuts and the prospect for messy political fights over fiscal policy will weigh on the U.S. economy this year and hold growth to a tepid 2.4 percent, according to a survey of forecasters published on Monday.

* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 7.83 tonnes, or 0.61 percent, to 1,272.848 tonnes on Feb 25, the lowest since August 2012.

MARKET NEWS

* U.S. stocks on Monday suffered their biggest drop since November after the strong showing in Italian elections by groups opposed to the country's economic reforms.

* The euro crouched near a six-week low against the dollar while the yen kept some distance from multi-month lows on Tuesday. <USD/>

(Reporting by Rujun Shen; Editing by Joseph Radford)

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

REUTERS SHOWCASE

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Global Economy

Global Economy

Chinese factories stalling as euro zone business picks up  Full Article 

Rupee Falls

Rupee Falls

Rupee falls for third day; foreign fund inflows key.  Full Article 

Record High

Record High

BSE Sensex hits record high for third straight day.  Full Article 

M&M Upgraded

M&M Upgraded

Credit Suisse upgrades Mahindra & Mahindra to 'outperform'  Full Article 

Breakingviews

Breakingviews

Manchester United’s crisis has silver lining  Full Article 

Reuters India Mobile

Reuters India Mobile

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