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Gold heads for worst week in two months on Syria, Fed

Global oil prices climbed for a second straight day on Thursday as investors monitored diplomatic efforts to eliminate Syria's chemical weapons

Reuters Singapore

 

Gold edged up on Friday after plunging more than 3% in the previous session, but remained on track for its worst week in two months on fears the United States would curb its stimulus soon and as a US strike on Syria looked less likely.
 
FUNDAMENTALS
 
* Gold had risen 0.55% to $1,327.41 an ounce by 0012 GMT. It tumbled to its weakest since August 15 at $1,320.19 an ounce on Thursday, tracking heavy losses in U.S gold futures.
 
* US gold futures trading was momentarily halted at 2:54 a.m. EDT (0654 GMT) on Thursday by CME Group's Stop Logic mechanism to prevent large movements. In the one minute around the 20-second trading pause, gold prices slid $10 with an unusually heavy 4,300 contracts changing hands, Reuters data showed.
 
* US gold was at $1,327.50 an ounce, down $3.10.
 
* The United States and Russia began high-stakes talks on Thursday on Moscow's plan for Syria to surrender its chemical weapons as Damascus formally applied to join a global poison gas ban, but Secretary of State John Kerry underscored that US military force may still be necessary if diplomacy fails.
 
* Consensus is building among analysts that the Federal Reserve's policy meeting next week could result in the central bank paring back its $85 billion monthly bond purchases. The Federal Open Market Committee is set to release a policy statement at the end of its two-day meeting next Wednesday.
 
* HSBC Global Research raised its 2013 gold price forecast and said physical demand is becoming a major driver for the metal. It lifted its gold price outlook for this year to $1,446 per ounce from $1,396, and kept its 2014 forecast unchanged at $1,435 an ounce.
 
MARKET NEWS
 
* The yen clung to broad overnight gains in Asia on Friday as investors unwound bearish positions particularly against the Australian dollar, which suffered a major setback in the wake of disappointing jobs data at home.
 
* Global oil prices climbed for a second straight day on Thursday as investors monitored diplomatic efforts to eliminate Syria's chemical weapons and Libya declared force majeure on another three ports.
 

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First Published: Sep 13 2013 | 6:19 AM IST

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