Arab Today, arab today gold surrenders gains after posteu
Last Updated : GMT 00:25:05
Arab Today, arab today
Arab Today, arab today

Gold surrenders gains after post-EU

Arab Today, arab today

Arab Today, arab today Gold surrenders gains after post-EU

London - Arabstoday

Gold prices eased a touch today after a sharp rally the previous session, surrendering gains along with the euro and other commodities as a bounce lent to the financial markets by European Union plans to tackle the debt crisis petered out. Gold surged 3 per cent on Friday, its biggest one-day rise since June 1, after Eurozone leaders agreed at a summit on measures to cut borrowing costs in Italy and Spain and shore up the region’s banks, leading to a broad rally in financial markets. It has now surrendered some gains, but lingering optimism over the summit’s outcome, reflected in gains in stock markets and falling Spanish and Italian bond yields, provided support. Spot gold was down 0.3 per cent at $1,592.50 an ounce at 10.06am, while US gold futures for August delivery were down $11 an ounce at $1,593.20. Prices held just below their 50-day moving average at $1,599 an ounce, having failed to gain traction above $1,600. Definitive policy response “We are staunch believers that gold will remain a risk-on asset for the foreseeable future,” RBS analyst Nikos Kavalis said. “So if we continue to see a more definitive policy response by authorities, gold will continue to benefit.” “Having said that...the investment bid will be essential for the price to move up,” he added. “That will be without a doubt linked to continued news flow. This morning, we have had a setback across the sector, and gold has not been left out.” Pressured by strength in the dollar, the metal has moved more closely in line this year with assets seen as higher risk such as stocks than the ‘safe havens’ it tracked last year, including Treasuries, German Bunds, and the US currency. Among commodities, crude oil and industrial metals prices slipped following weak factory data from Europe and Asian economies, including China, the world’s top energy consumer. The euro, which rose nearly 2 per cent on Friday, edged a touch lower today as traders questioned the sustainability of its rally. Lingering positive effects European stocks hit two-month highs, however, and Spanish and Italian government bond yields fell, suggesting some positive effects of the EU summit were still being felt. “If spreads between peripheral EU nations narrow with German Bunds, the financial markets may be more confident of the euro rally and by extension...the gold rally,” HSBC said in a note. “If this latest euro rally does reverse, euro bears will feel especially reinvigorated as the failure of the euro to hold onto gains even after demonstrably good news from the summit would suggest little underlying enthusiasm for the single currency. Should this occur, the gold market would likely fall.” Demand eases Demand for gold from the world’s number one bullion consumer, India, fell today as prices rose, with a depreciation in the rupee raising prices for local buyers. The world’s largest gold-backed exchange-traded fund (ETF), New York’s SPDR Gold Trust, reported a 2.11 tonne outflow on Friday, extending its first quarterly decline in holdings in a year. ETFs issue securities backed by physical stocks of metal and have proved a popular way to invest in gold since the start of the financial crisis, offering exposure to the underlying metal price without buyers having to store or insure physical bullion. Money managers cut their net long position in gold futures and options by 20 per cent, the first drop in five weeks, as a lack of fresh monetary stimulus by the US Federal Reserve prompted some investors to lessen bullish bets. Among other precious metals, silver was down 0.4 per cent at $27.38 an ounce. Spot platinum was down 0.6 per cent at $1,433.75 an ounce, while spot palladium was down 1 per cent at $572.50 an ounce. The platinum/palladium ratio, which measures the number of palladium ounces needed to buy an ounce of platinum, reached its highest in 2-1/2 months today at 2.49, as platinum outperformed. It is seen as more vulnerable than other precious metals to supply issues as costs rise and production falls in main producer South Africa. Anglo American Platinum, the world’s top platinum producer, warned today its first-half earnings would fall more than 20 per cent, hit by lower sales and falling prices.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold surrenders gains after posteu Arab Today, arab today gold surrenders gains after posteu

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold surrenders gains after posteu Arab Today, arab today gold surrenders gains after posteu

 



Arab Today, arab today Etiquette expert calls for short visits

GMT 16:21 2017 Monday ,26 June

Etiquette expert calls for short visits
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday