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Gold extends losses on gains in equities
April 9, 2013 / 1:07 AM / 5 years ago

Gold extends losses on gains in equities

SINGAPORE (Reuters) - Gold fell for a second straight day on Tuesday as investors shifted their money into equities after U.S. stocks gained ahead of an earnings season that is expected to show modest growth.

An employee checks gold bracelets at a jewellery store in Singapore April 11, 2006. REUTERS/Nicky Loh/Files

FUNDAMENTALS

Gold eased $2.33 an ounce to $1,570.76 by 0029 GMT. It plunged to a 10-month low last week after unprecedented monetary stimulus from the Bank of Japan and hopes for another European Central Bank rate cut failed to stem heavy selling of bullion by funds.

U.S. gold for June delivery was at $1,570.80 an ounce, down $1.70.

Federal Reserve Chairman Ben Bernanke said on Monday the central bank’s periodic bank stress tests have made the U.S. financial system more resilient.

Institutional investor George Soros said gold has been destroyed as a safe-haven asset, but expects continued central bank buying to support prices, the South China Morning Post reported.

Bullion holdings at the world’s major gold exchange-traded funds fell to their lowest since August 2012.

Reporting by Lewa Pardomuan; Editing by Himani Sarkar

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