14th India International Gold Convention on 11-13 Aug 2017 at Grand Hyatt, Goa. Concluded Successfully...
 You are here : Home > News
 
 
Gold eases as risk appetite grows, equities strengthen

Gold eases as risk appetite grows, equities strengthen

Tue Sep 12 2017

 

Gold on Tuesday extended losses from the previous session, with equities strengthening and the dollar holding gains as investor appetite for risk showed signs of picking up.

 

FUNDAMENTALS

Spot gold had edged 0.1 per cent lower to $1,325.56 an ounce by 0052 GMT. In the previous session, it lost 1.4 per cent in its biggest one-day per centage decline since early July.

 

US gold futures for December delivery were down 0.4 per cent at $1,330.00 an ounce.

 

Asian shares joined a global equities rally, hitting a 10-year peak on Tuesday with investors breathing a sigh of relief as North Korean fears eased slightly and the worst-case scenario from Hurricane Irma looked to have been avoided.

 

The dollar held on to large gains on Tuesday following a sharp rebound against the yen and euro.

 

The United Nations Security Council unanimously stepped up sanctions against North Korea on Monday over the country's sixth and most powerful nuclear test on Sept. 3, imposing a ban on the country's textile exports and capping imports of crude oil.

 

US inflation expectations slipped last month, with the year-ahead measure hitting its lowest level since early 2016, according to a Federal Reserve Bank of New York survey that adds to the din of surprisingly weak price measures.

 

Six European Central Bank policymakers prepared the ground on Monday for a gradual roll-back of the ECB's aggressive monetary stimulus, in light of stronger economic growth in the euro zone.

 

China's central bank on Monday scrapped two measures that were put in place to support the yuan when it was under significant selling pressure, suggesting Beijing is anxious to quash one way bets on the yuan as outflows ease and exporters face strain.

 

The Russian central bank is expected to cut its key rate to 8.5 per cent on Friday, catching up with a rapid slowdown in inflation, a Reuters poll showed on Monday.

 

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.14 per cent to 835.68 tons on Monday from 834.50 tons on Friday.

 

Source: Reuters