SINGAPORE, May 17 (Reuters) - Gold edged up on Friday as stock markets paused after rally, but the metal was still on track for its worst weekly decline in a month as investors cut exposure to bullion, sending holdings in exchange-traded funds to the lowest in four years. FUNDAMENTALS * Spot gold was up 0.17 percent to $1,388.11 an ounce by 0038 GMT, having fallen to a four-week low of $1,369.29 on Thursday as renewed liquidation in gold ETFs and the recent drop below the $1,400-per-ounce level spooked investors. * U.S. gold for June delivery was little changed at $1,386.70. * SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.55 percent to 1041.42 tonnes on Thursday - the lowest in four years. * Premiums for gold bars rallied to all-time highs in Hong Kong and Singapore on Thursday after bullion's steepest drop since its April sell-off fuelled another round of buying that constricted supply. * Gold investment nearly halved in the first quarter as a brighter view of the U.S. economy prompted investors in the West to favour other assets, but Chinese coin and bar demand hit a quarterly record of 109.5 tonnes, the World Gold Council said on Thursday. * Indian gold futures fell 1.5 percent on Thursday, extending losses for a second straight session, to hit their lowest level in nearly a month in line with global markets. * The Shanghai Gold Exchange (SGE) will launch after-hours trading for Fridays on May 31 as part of its efforts to help its members better manage price risks, the bourse said in a statement on Thursday. * For the top stories on metals and other news, click , or MARKET NEWS * The Nikkei share average fell for a second day on Friday as caution over the recent steep rises continued to spur profit-taking, while a pullback in Wall Street soured investor sentiment. * Global equity markets fell on Thursday after a regional president of the Federal Reserve said the U.S. central bank could begin to ease up on its loose monetary policy this summer, leading the dollar to recover against the euro. DATA/EVENTS (GMT) 1355 U.S. TR/U Michigan sentiment index 1400 U.S. Leading indicators PRECIOUS METALS PRICES 0038 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1388.11 2.42 +0.17 -17.10 Spot Silver 22.67 0.01 +0.04 -25.13 Spot Platinum 1479.99 0.99 +0.07 -3.58 Spot Palladium 734.25 -1.75 -0.24 6.11 COMEX GOLD JUN3 1386.70 -0.20 -0.01 -17.25 2478 COMEX SILVER JUL3 22.63 -0.03 -0.13 -25.14 855 Euro/Dollar 1.2884 Dollar/Yen 102.21 COMEX gold and silver contracts show the most active months Source: http://www.reuters.com/article/2013/05/17/markets-precious-idUSL3N0DY04P20130517
The MICEX dropped 0.98 percent and will open Thursday at 1391.98. The RTS slightly eased and gained 5.83 points, closing at 1.396.76.
European market indices also gained. On Asian floors, the Euro Stoxx is up 0.50 percent to 2,809.58, France’s CAC 40 is up 0.41 percent, and Germany’s DAX is making gains, up 0.28 percent, continuing its record gain ascent.
Market gains appeared immune to France’s poor Q1 news which officially put them in a recession, or Germany’s slowed growth report.
In London, FTSE 100 added 0.22 percent, continuing its nine-day rally, after the Bank of England revised its growth predictions for the second quarter. On Asian floors, the index dipped down to 6,990.70 at 11:29 GMT. UK lenders led the markets- Royal Bank of Scotland jumped 1.75 percent, Barclays rallied 1.83 percent and Lloyds Banking jumped 1.87 percent.
US markets ended high Wednesday. The Dow Jones gained 0.40 percent and closed and the S&P 500 rose 0.51 percent, and the NASDAQ Composite edged up 0.26 percent on the New York Exchange. Analysts await US inflation and unemployment data, set to be released at 13:30 GMT.
Asian stocks were mixed on Japan’s solid 3.5 percent GDP increase, easily topping 2.7 percent estimates The Nikkei fell 1.08 percent after it hit a five-year high on Wednesday. Hong Kong’s Seng gained 0.27 percent and the Shanghai Composite added 0.59 percent
Australia’s S&P/ASX 200 fell 0.20 percent on falling gold prices and mining weakness. The NZSE also dropped 0.21 percent, and on Thursday announced its 2013-2014 GDP growth forecast of 2.3 percent, compared to last year’s 3 percent growth.
Both WTI and Brent are trading low. WTI is down 0.41 percent and trading at 93.91 and Brent is down 0.40 percent at 103.27.
Gold edged lower on Monday after rising by the most since November in the previous session on poor U.S. jobs data, with funds expected to continue cutting bullion holdings for better investment yields elsewhere. But gold futures in Tokyo jumped almost 5 percent to near all time-highs, marking their sharpest daily rise since September 2011, after the yen dropped to near four-year lows on reports the Bank of Japan would begin buying longer-dated bonds immediately to beat deflation. Spot gold had dropped 0.2 percent to $1,578.94 an ounce by 0642 GMT, also hurt by a firmer dollar versus a basket of currencies. Gold climbed nearly 2 percent on Friday after data showed U.S. employers hired at the slowest pace in nine months in March, backing expectations the Federal Reserve would sustain its bullion-boosting monetary stimulus programme. But Monday's price drop shows the fund shift out of gold remains intact with the U.S. economy generally expected to perform better in the longer term, said Joyce Liu, investment analyst at Phillip Futures. "People are really pulling funds out of gold for better investments such as equities and real estate in emerging economies," said Liu. "The kind of rally that we saw from 2009 to 2011 is no longer going to be there anymore. We are more or less used to having so much money flowing around in the economy." Liu said she sees gold testing a support level of $1,530, possibly over the next two weeks. Gold hit a 10-month low of around $1,539 last week and is down nearly 6 percent this year. In contrast, the S&P 500 stock index has gained almost 9 percent. ETF OUTFLOWS Others are more bearish on gold's prospects. "The lack of investment interest is currently a key drag on the market," Credit Suisse analysts said in a note. "With technical momentum turning negative, there is a risk for a shift lower towards $1,520 and ultimately $1,500, which is a critical technical area that needs to hold for the sideways trend to remain intact." U.S. gold futures were up 0.2 percent at $1,579.10 an ounce. Bullion holdings at the world's major gold exchange traded funds continued to fall, hitting their lowest since August 2012. In Tokyo, gold futures surged as much as 4.8 percent to 5,025 yen ($51.71) per gram, near the record high of 5,081 yen touched in February, as the yen faltered. The most-active February contract on the Tokyo Commodity Exchange closed up 4.5 percent at 5,015 yen, the biggest single-day percentage increase since Sept. 27, 2011. The Japanese currency slid to 98.85 versus the dollar, its weakest since June 2009, on reports that the central bank would buy 1.2 trillion yen ($12.35 billion) of government bonds with a maturity of over five years this week, showing a sense of urgency never before seen in the BOJ. "If the yen goes up to 100 then we have quite a good chance to try higher prices for TOCOM gold," said Yuichi Ikemizu, branch manager for Standard Bank in Tokyo. Last week, the BOJ promised to inject about $1.4 trillion into the economy in less than two years, a gamble that sent bond yields plummeting as prices rose on the prospect of massive purchases of debt by the central bank. Precious metals prices 0642 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1578.94 -2.56 -0.16 -5.71 Spot Silver 27.30 0.00 +0.00 -9.84 Spot Platinum 1539.24 8.24 +0.54 0.28 Spot Palladium 729.72 3.31 +0.46 5.45 COMEX GOLD JUN3 1579.10 3.20 +0.20 -5.77 19847 COMEX SILVER MAY3 27.25 0.03 +0.09 -9.87 3473 Euro/Dollar 1.2984 Dollar/Yen 98.54 COMEX gold and silver contracts show the most active months ($1 = 97.1700 Japanese yen) Source: http://www.reuters.com/article/2013/04/08/markets-precious-idUSL3N0CV08T20130408