Don’t miss the latest developments in business and finance.

Gold set to snap five-week rally on strong US data, equities

Image
Reuters SINGAPORE
Last Updated : Jan 31 2014 | 6:40 AM IST

SINGAPORE (Reuters) - Gold looked poised to post its first weekly drop in six weeks on Friday as strong U.S. economic growth boosted global equities and the dollar, hurting the metal's safe-haven appeal.

Bullion was also under pressure due to the absence of top buyer China, shut for the Lunar New Year holiday.

FUNDAMENTALS

* Spot gold was largely unchanged at $1,244.11 an ounce by 0015 GMT after a 2-percent overnight drop. It is down 2 percent for the week.

* U.S. gross domestic product grew at a 3.2 percent annual rate in the final three months of last year, the Commerce Department said on Thursday, in line with economist expectations.

* South Africa's AMCU union rejected a 9 percent wage offer on Thursday from leading platinum producers, prolonging a week of industrial action.

More From This Section

* South Africa's metalworkers union said it will down tools at a smelter of top platinum producer Anglo American Platinum from Feb 5.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.60 tonnes to 793.16 tonnes on Thursday.

* Goldcorp Inc said Canada's antitrust watchdog has indicated it does not intend to challenge the gold miner's move to acquire its smaller rival Osisko Mining Corp .

MARKET NEWS

* The dollar strengthened and global equity markets rebounded on Thursday after data showed the U.S. economy grew strongly in the last quarter of 2013.

(Reporting by A. Ananthalakshmi; Editing by Joseph Radford)

Also Read

First Published: Jan 31 2014 | 6:22 AM IST

Next Story