TOPIC: Gold Gains in New York as Drop to Six-Week Low Att
Gold Gains in New York as Drop to Six-Week Low Att 1 year, 1 month ago #54
Gold Gains in New York as Drop to Six-Week Low Attracts Buyers
2012-03-07 13:20:16.49 GMT
By Nicholas Larkin
March 7 (Bloomberg) -- Gold gained for the first time in four days in New York as some investors bought the metal after its drop to the lowest level in almost six weeks.
Bullion slipped 1.9 percent yesterday as the dollar strengthened and commodities slid on concern slower growth will cut demand. The dollar was little changed versus the euro today before tomorrow’s deadline for a Greek bond exchange needed for the nation to receive a second aid package.
“Gold is likely to benefit from further investment dip buying interest,” James Moore, an analyst at TheBullionDesk.com in London, said in a report. Still, “the metal remains vulnerable to further pressure in the short-term” after yesterday falling below its 200-day moving average, he said.
Gold for April delivery gained 0.5 percent to $1,680.30 an ounce by 8 a.m. on the Comex in New York. It fell to $1,663.40 yesterday, the lowest since Jan. 25. Bullion for immediate delivery rose 0.4 percent to $1,680.20 in London.
Bullion dropped below its 200-day moving average yesterday for the first time since mid-January. Falling below the measure, currently at about $1,674, can be a bearish signal to some investors who study charts. Prices are up 7.2 percent this year and holdings in gold-backed exchange-traded products rose 0.4 metric ton to a record 2,406.3 tons yesterday, data compiled by Bloomberg show.
Societe Generale SA, France’s second-biggest bank, Assicurazioni Generali SpA and UniCredit SpA joined companies saying they would participate in Greece’s debt swap as the country threatened to compel holdouts to take part. The goal of the swap, which runs until March 8, is to reduce by 53.5 percent the total of privately held Greek sovereign debt, helping the country avert an uncontrolled default.
“With sentiment now on very shaky ground, it’s hard to identify where a floor might arise,” Edel Tully, an analyst at UBS AG in London, wrote today in a report. “Gold needs physical demand to step in, and in size, otherwise further downside seems inevitable.”
Silver for May delivery gained 1 percent to $33.10 an ounce after sliding to $32.49 an ounce yesterday, the lowest price since Jan. 25. It’s the best-performing precious metal this year with a gain of 19 percent.
Palladium for June delivery was up 0.7 percent at $676.25 an ounce and fell yesterday to $660.60, the lowest level since Jan. 18. Platinum for April delivery rose 0.7 percent to
$1,623.70 an ounce. It slipped yesterday to a two-week low of $1,606.
Pound Rises Against Dollar as BOE Maintains Bond-Purchase Target
2012-03-08 13:37:18.94 GMT
By David Goodman
March 8 (Bloomberg) -- The pound rose the most in more than a week against the dollar as the Bank of England said it will leave its debt-purchase program on hold and kept its benchmark interest rate at a record low.
Gilts declined, with 10-year yields rising for the third time in four days. The central bank maintained a pledge to buy
50 billion pounds ($79 billion) of bonds by May under its so- called quantitative-easing program and kept its benchmark interest rate at 0.5 percent. Both decisions were unanimously predicted in separate Bloomberg News surveys of economists. The pound slid against the euro on speculation Greece will attract enough investors to make its debt-swap plan a success.
The decision to announce “no further quantitative easing might support the pound slightly since it is a relief for the market,” You-Na Park, a foreign-exchange strategist at Commerzbank AG in Frankfurt.
The British currency climbed 0.3 percent to $1.5792 at 1:35 p.m. London time after rising 0.6 percent, the biggest advance since Feb. 29. It depreciated 0.4 percent to 83.83 pence per euro, and touched 83.91 pence, the weakest level since Feb. 29.
Investors with about 60 percent of the Greek bonds eligible for the nation’s debt swap have so far indicated they’ll participate, according to data compiled by Bloomberg, putting the country on the verge of the biggest sovereign restructuring in history.
“News out of Greece will have an effect on euro- sterling,” Park said. “If it looks like the Greek deal will work as planned than this would be positive for the euro.”
The European Central Bank also left its benchmark interest rate unchanged at 1 percent, as predicted by 56 out of 58 analysts in a Bloomberg News survey.
Sterling has weakened 1 percent this year, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-nation currencies. The dollar declined 2.7 percent, and the euro dropped 0.4 percent.
The 10-year gilt yield was three basis points higher at
2.17 percent. The 4 percent security due March 2022 fell 0.28 or
2.80 pounds per 1,000-pound face amount, to 116.405. Two-year yields were little changed at 0.44 percent.
“No one was expecting any changes from the meeting,” John Wraith, a fixed-income strategist at Bank of America Merrill Lynch in London, said before the Bank of England decision. “I don’t expect a meaningful reaction in the gilt market.”
The 10-year yield climbed three basis points to 2.23 percent after the central bank raised the ceiling on bond purchases to 325 billion pounds at last month’s meeting.
Gilts have handed investors a 0.8 percent loss this year, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. U.S. Treasuries have dropped 0.3 percent and German government bonds have gained 0.4 percent.
Oil Rises a Third Day as U.S. Payrolls Grow, Bolstering Outlook
2012-03-09 15:40:48.284 GMT
By Mark Shenk
March 9 (Bloomberg) -- Oil climbed for a third day in New York after the U.S. boosted payrolls more than forecast, bolstering optimism that the world’s largest economy and fuel demand will grow.
Futures rose as much as 1.3 percent after Labor Department figures showed that payrolls increased by 227,000 in February. A gain of 210,000 was projected, according to the estimates of economists surveyed by Bloomberg News. Greece said it reached its target in the biggest sovereign restructuring in history, reducing the likelihood of a default.
“The jobs data is very positive across the board,” said Jason Schenker, president of Prestige Economics LLC, an Austin Texas-based energy consultant. “This should increase optimism about the U.S. economy and job market in 2012.”
Oil for April delivery climbed $1.33, or 1.2 percent, to
$107.91 a barrel at 10:34 a.m. on the New York Mercantile Exchange. Prices have advanced 1.1 percent this week and 9.2 percent this year.
Brent oil for April settlement gained 42 cents, or 0.3 percent, to $125.86 a barrel on the London-based ICE Futures Europe exchange.
Revisions added a total of 61,000 jobs to payrolls in December and January, government figures showed. The unemployment rate held at 8.3 percent.
The trade deficit in the U.S. widened in January to the largest since October 2008 as imports rose to a record high. The gap increased 4.3 percent to $52.6 billion, more than forecast, from a revised $50.4 billion in December, the Commerce Department in Washington said today.
“We had a pretty darn good jobs number,” said Phil Flynn, an analyst at PFGBest in Chicago. “More jobs translate into greater demand. The trade deficit data, with record imports, may be tempering optimism a bit.”
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