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Gold on back foot as dollar stays near 14-year high

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Reuters
Last Updated : Dec 21 2016 | 6:57 AM IST

(Reuters) - Gold extended its losses on Wednesday after dipping in the previous session, dragged down as the U.S. dollar stayed near 14-year highs against a basket of currencies.

FUNDAMENTALS

* Spot gold was down 0.1 percent at $1,131.01 an ounce by 0053 GMT. It fell 0.6 percent the day before.

* U.S. gold futures were also 0.1-percent lower, at $1,133 per ounce.

* The U.S. dollar was encamped near 14-year peaks on Wednesday as global yield spreads moved inexorably in its favour, while a falling yen lifted Japanese shares to a one-year top.

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* The dollar index , which measures the greenback against a basket of currencies, stood at 103.270, having touched 103.65 on Tuesday, its highest since December 2002.

* Bank of Japan Governor Haruhiko Kuroda on Tuesday offered an upbeat view of the economy but sought to douse market talk the central bank may soon consider raising interest rates.

* Russia's central bank, which is seeking to diversify its reserves, posted a large monthly gain in its gold reserves for the second consecutive month on Tuesday.

* India's gold imports from Switzerland hit their highest in a year last month, data from the Swiss customs bureau showed on Tuesday, making it the biggest destination for bullion exports from the trading and refining hub.

* Great Panther Silver Ltd has entered into agreement with units of Nyrstar N.V. to acquire the Coricancha gold-silver-lead-zinc-copper mine and mill complex in Peru.

* New standards for the use of precious metals in Islamic finance are encouraging the development of financial products based on gold and silver, from futures contracts to a mobile app.

(Reporting by Swati Verma in Bengaluru; Editing by Joseph Radford)

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First Published: Dec 21 2016 | 6:43 AM IST

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