Gold eases for second day on uptick in risk appetite | Reuters - Firstpost
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Gold eases for second day on uptick in risk appetite | Reuters

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SINGAPORE Gold lost more ground on Friday, falling for five out of six sessions as a rebound in oil and equity markets reduced the precious metal's safe haven appeal. Gold has dropped 2.5 percent this week, its biggest weekly decline since early November.

FUNDAMENTALS

* Spot gold slid 0.1 percent to $1,076.88 an ounce by 0007 GMT while U.S. gold futures gained 0.3 percent to $1,076.8.

* A bounce in global stock markets and oil prices added pressure on precious metals.

* The metal hit two-month highs at $1,112 last week as volatility in Chinese stocks battered appetite for risk, but trading has since fallen as expectations of further U.S. interest rate increases lowers demand for the non-interest-paying asset.

* The Fed raised rates in December and attention has shifted to how many hikes will follow in 2016.

* St. Louis Federal Reserve President James Bullard said a continued decline in inflation expectations may change his outlook for further Fed rate hikes, though so far he feels the United States continues on a healthy track.

* Bullard's comments followed those by Chicago Fed President Charles Evans on Wednesday, when he said he was nervous about the potential effects of China's slowdown on the U.S. economy and about the possibility that inflation expectations may be slipping.

* The world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, reported a 2.4 tonne rise in its holdings on Wednesday, bringing its total inflow for the year to 11.7 tonnes.

* Silver gave up 0.2 percent to $13.83 an ounce, palladium fell 0.1 percent at $490.25 an ounce and platinum added 0.1 percent to $835.18.

MARKET NEWS

* The energy sector led the beaten-up U.S. stock market higher on Thursday as oil prices rebounded from 12-year lows. Major U.S. indexes climbed about 2 percent after dropping to 3-1/2 month lows on Wednesday. [MKTS/GLOB]

* The safe-haven yen nursed losses early on Friday, while currencies such as the Australian dollar staged a modest rebound thanks in part to a turnaround in risk sentiment that saw Wall Street and oil prices bounce off lows.

(Reporting by Naveen Thukral; Editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.

First Published On : Jan 15, 2016 07:00 IST

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