Tuesday, 11 June 2013

Bloomberg: Gold Trades Near Two-Week Low on Stimulus Outlook, Assets Gain

Gold traded near the lowest level in two weeks as investors weighed an increase in holdings against speculation the Federal Reserve may curb stimulus after Standard & Poor’s boosted its outlook for the world’s largest economy.

Bullion for immediate delivery fell 0.2 percent to $1,383.97 an ounce at 9:31 a.m. in Singapore. Prices declined to $1,375.95 yesterday, the lowest level since May 28, after S&P lifted the U.S.’s AA+ credit rating outlook to stable from negative, citing receding fiscal risks. Gold for August delivery fell 0.2 percent to $1,382.90 on the Comex.

Gold dropped 2.2 percent on June 7 after data showed U.S. payrolls increased more than forecast in May, spurring speculation the Fed will curb its debt purchases that helped bullion cap a 12-year bull run in 2012. Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, expanded yesterday for the first time since May 29, according to data on the company’s website.

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