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Gold holds near six-month low; ends 2013 down 28 percent

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Reuters SINGAPORE
Last Updated : Jan 02 2014 | 6:45 AM IST

SINGAPORE (Reuters) - Gold steadied on Thursday but held near a six-month low touched in the previous session after prospects for a global economic recovery prompted investors to abandon the safe-haven metal.

After a 12-year bull run, gold tumbled 28 percent in 2013, with the U.S. Federal Reserve's plan to step away from ultra-loose monetary policy undermining the investor rationale for holding bullion.

FUNDAMENTALS

* Spot gold was little changed at $1,205.30 an ounce by 0052 GMT after falling to $1,184.50 an ounce on Tuesday, its weakest since June 28.

* U.S. gold added 0.20 percent to $1,204.70 an ounce.

* Growth in China's factories slowed slightly in December as export orders and output weakened, official data showed on Wednesday, adding to views that while the world's second-largest economy remains resilient, it lost some steam in late 2013.

* Italian carmaker Fiat SpA FIA.MI struck a $4.35 billion deal to gain full control of Chrysler Group LLC, ending more than a year of tense talks that have obstructed Chief Executive Sergio Marchionne's efforts to combine the two automakers' resources.

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MARKET NEWS

* Asian markets got the new year off to a sluggish start as Chinese economic data disappointed ahead of a raft of reports on global manufacturing due out through the session.

* Brent crude fell on Tuesday, ending 2013 almost unchanged following a year in which traders balanced a spate of supply disruptions from Middle East and Africa against surging output from the United States.

(Reporting by Lewa Pardomuan; Editing by Subhranshu Sahu)

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First Published: Jan 02 2014 | 6:40 AM IST

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