Business Standard

Gold eases after stimulus hopes spur 3-day rise

Spot gold edged down $1.29 to $1,609.39 an ounce by 0018 GMT

Image

Reuters Singapore

Gold inched lower on Wednesday, after advancing for three straight days on hopes that central banks in Europe and the United States will launch more stimulus measures to help shore up faltering economies.

FUNDAMENTALS

* Spot gold edged down $1.29 to $1,609.39 an ounce by 0018 GMT, after rising more than 1 percent over the past three sessions.

* U.S. gold futures contract for December delivery was little changed at $1,612.50.

* Ratings agency Standard & Poor's revised Greece's outlook to negative, saying the debt-ridden euro zone country could need more help from its international creditors.

* German industrial orders fell more than expected in June as domestic and euro zone demand faltered, indicating the single currency bloc's debt crisis is taking its toll on Europe's largest economy.

 

* Italy shrank further into recession in the second quarter for a 2.5 percent yearly decline, data showed on Tuesday, threatening attempts by Mario Monti's technocrat government to control a debt crisis that is undermining the whole euro zone.

* Boston Fed Bank President Eric Rosengren said the central bank should launch another bond buying programme of whatever size and duration is necessary to get the economy back on its feet. Rosengren is not a voter on the policy-setting panel and is considered among the most outspoken "doves".

* Spot silver eased to $27.99 per ounce, after rising to a one-week high of $28.23 on Tuesday.

MARKET NEWS

* U.S. stocks rose for a third straight day on Tuesday, pushing the S&P above 1,400 for the first time since early May, on growing optimism the European Central Bank would act soon to contain the euro zone's debt crisis.

* The yen started Asian trading on the backfoot on Wednesday, having sagged across the board as investors continued to favour riskier assets on persistent hopes the European Central Bank and Federal Reserve will add more stimulus soon.

 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 08 2012 | 6:40 AM IST

Explore News