Gold dips to within striking distance of four-year low
Gold dipped for a fifth session in six on Wednesday, flirting with a four-year low as a strong dollar kept investors away from the safe-haven asset and physical demand failed to provide underlying support.
Underscoring the lack of interest in bullion, holdings in SPDR Gold Trust, the top gold-backed exchange traded fund, slumped to a fresh six-year low.
Physical buying of jewellery, coins and bars - which usually picks up at lower prices - has not emerged robustly enough to put a floor under prices Nifty Trading Tips
"In addition, the roaring US equity markets continue to siphon off assets away from alternative investments, including gold," he said.
The yellow metal is often seen as a hedge against inflation and financial uncertainties.
Spot gold fell 0.4% to $1,163.40 an ounce by 0350 GMT, after snapping a four-day decline on Tuesday with a 0.3% rise. The metal on Friday fell to its lowest since 2010 at $1,161.25.
Silver was also close to a four-year low, easing about 1% Free Share Tips
Asian shares eased, while the dollar nursed modest losses early on Wednesday as investors decided to take some profits on a four-session rally that swept the greenback to multi-year highs against the yen and euro.
The dollar has been an investor favourite recently, hitting a four-year high against a basket of major currencies earlier this week. Commodity Trading Tips
A stronger greenback makes gold more expensive for holders of other currencies, and dulls its appeal as a hedge.
The lack of investor appetite for gold was evident in outflows from the SPDR gold fund. Its holdings fell 0.32% to 738.82 tonnes on Tuesday — its lowest since September 2008. The fund tends to influence investor sentiment due to the size of its holdings.
Underscoring the lack of interest in bullion, holdings in SPDR Gold Trust, the top gold-backed exchange traded fund, slumped to a fresh six-year low.
Physical buying of jewellery, coins and bars - which usually picks up at lower prices - has not emerged robustly enough to put a floor under prices Nifty Trading Tips
"There is very little on the horizon that is bullish. Despite the trillions of dollars of stimulus over the past several years, most central bankers are worried about deflation, not inflation," said INTL FCStone analyst Edward Meir Stock Market Tips
"In addition, the roaring US equity markets continue to siphon off assets away from alternative investments, including gold," he said.
The yellow metal is often seen as a hedge against inflation and financial uncertainties.
Spot gold fell 0.4% to $1,163.40 an ounce by 0350 GMT, after snapping a four-day decline on Tuesday with a 0.3% rise. The metal on Friday fell to its lowest since 2010 at $1,161.25.
Silver was also close to a four-year low, easing about 1% Free Share Tips
Asian shares eased, while the dollar nursed modest losses early on Wednesday as investors decided to take some profits on a four-session rally that swept the greenback to multi-year highs against the yen and euro.
The dollar has been an investor favourite recently, hitting a four-year high against a basket of major currencies earlier this week. Commodity Trading Tips
A stronger greenback makes gold more expensive for holders of other currencies, and dulls its appeal as a hedge.
The lack of investor appetite for gold was evident in outflows from the SPDR gold fund. Its holdings fell 0.32% to 738.82 tonnes on Tuesday — its lowest since September 2008. The fund tends to influence investor sentiment due to the size of its holdings.
posted by Naresh Jain @ 22:39
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