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PRECIOUS-Gold falls to 1-month low on Fed stimulus outlook
June 20, 2013 / 12:32 AM / 4 years ago

PRECIOUS-Gold falls to 1-month low on Fed stimulus outlook

SINGAPORE, June 20 (Reuters) - Gold fell for a fourth
straight session on Thursday to its lowest in a month after the
Federal Reserve said the U.S. economy was recovering strongly
enough for the central bank to slow the pace of bond purchases
later this year.
    
    FUNDAMENTALS
    * Spot gold fell 0.4 percent to $1,344.9 an ounce by
0013 GMT, after falling 1.2 percent on Wednesday. Bullion, which
is down over 3 percent for the week, touched a low of $1,342.74
earlier in the session.
    * U.S. gold fell over 2 percent to $1344.10.
    * Fed Chairman Ben Bernanke's confirmation that the bank is
getting closer to pulling back on its $85 billion in monthly
asset purchases confirmed investor fears, sending stocks and
bonds sharply lower and pushing benchmark Treasury yields to a
15-month high.
    * Bernanke said the central bank will continue to reduce the
pace of purchases in measured steps through the first half of
next year, ending purchases around mid-year if the U.S. economy
continued to show strength.  
    * The bond purchases have helped support gold prices this
year even as investors dumped bullion, which is typically seen
as a hedge against inflation, in favour of stocks. 
    * Holdings of SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell below 1,000 tonnes for
the first time in 4 years. 
    * SPDR holdings fell 0.2 percent to 999.56 tonnes on
Wednesday from 1,001.66 tonnes on Tuesday, the lowest since
February 2009. 
    * Russian gold production rose by 8.3 percent in the first
four months of 2013 compared to the same period of last year,
the Gold Industrialists' Union said on Wednesday.
 
    * For the top stories on metals and other news, click
, or 
    
    MARKET NEWS
    * Japan's Nikkei shares opened down 1 percent on Thursday,
while the U.S. dollar held firm.  
    
    DATA/EVENTS
    0658 France Markit Mfg Flash PMI Jun     
    0728 Germany Markit Mfg Flash PMI Jun    
    0758 EZ Markit Mfg flash PMI Jun          
    1230 U.S. Jobless claims Weekly          
    0145 China's HSBC flash PMI for June
    1400 U.S. Philly Fed business indx Jun   
    1400 U.S. Exist. home sales % chg May    
    1400 U.S. Existing home sales May        
  Precious metals prices 0013 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1344.90   -5.79   -0.43    -19.69
  Spot Silver        21.19   -0.12   -0.56    -30.02
  Spot Platinum    1404.24   -5.76   -0.41     -8.52
  Spot Palladium    686.72   -7.28   -1.05     -0.76
  COMEX GOLD AUG3  1344.10  -29.90   -2.18    -19.79         7537
  COMEX SILVER JUL3  --
  Euro/Dollar       1.3288
  Dollar/Yen         96.47
 
  COMEX gold and silver contracts show the most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)

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