PRECIOUS-Gold Falls to 1-Month Low on Fed Stimulus Outlook-Shanghai Metals Market

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PRECIOUS-Gold Falls to 1-Month Low on Fed Stimulus Outlook

Industry News 09:39:07AM Jun 20, 2013 Source:SMM
SINGAPORE, June 20 - Gold fell for a fourth straight session on Thursday to its lowest in a month after the Federal Reserve said the U.S. economy was recovering strongly enough for the central bank to slow the pace of bond purchases later this year.
    
FUNDAMENTALS
* Spot gold fell 0.4 percent to $1,344.9 an ounce by 0013 GMT, after falling 1.2 percent on Wednesday. Bullion, which is down over 3 percent for the week, touched a low of $1,342.74 earlier in the session.
    
* U.S. gold fell over 2 percent to $1344.10.
    
* Fed Chairman Ben Bernanke's confirmation that the bank is getting closer to pulling back on its $85 billion in monthly asset purchases confirmed investor fears, sending stocks and bonds sharply lower and pushing benchmark Treasury yields to a 15-month high.
    
* Bernanke said the central bank will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year if the U.S. economy continued to show strength.  
    
* The bond purchases have helped support gold prices this year even as investors dumped bullion, which is typically seen as a hedge against inflation, in favour of stocks. 
    
* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell below 1,000 tonnes for the first time in 4 years. 
    
* SPDR holdings fell 0.2 percent to 999.56 tonnes on Wednesday from 1,001.66 tonnes on Tuesday, the lowest since February 2009. 
    
* Russian gold production rose by 8.3 percent in the first four months of 2013 compared to the same period of last year, the Gold Industrialists' Union said on Wednesday.
    
MARKET NEWS
* Japan's Nikkei shares opened down 1 percent on Thursday, while the U.S. dollar held firm.  
    
    DATA/EVENTS
    0658 France Markit Mfg Flash PMI Jun     
    0728 Germany Markit Mfg Flash PMI Jun    
    0758 EZ Markit Mfg flash PMI Jun          
    1230 U.S. Jobless claims Weekly          
    0145 China's HSBC flash PMI for June
    1400 U.S. Philly Fed business indx Jun   
    1400 U.S. Exist. home sales % chg May    
    1400 U.S. Existing home sales May        
  Precious metals prices 0013 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1344.90   -5.79   -0.43    -19.69
  Spot Silver        21.19   -0.12   -0.56    -30.02
  Spot Platinum    1404.24   -5.76   -0.41     -8.52
  Spot Palladium    686.72   -7.28   -1.05     -0.76
  COMEX GOLD AUG3  1344.10  -29.90   -2.18    -19.79         7537
  COMEX SILVER JUL3  --
  Euro/Dollar       1.3288
  Dollar/Yen         96.47
 
  COMEX gold and silver contracts show the most active months
 

PRECIOUS-Gold Falls to 1-Month Low on Fed Stimulus Outlook

Industry News 09:39:07AM Jun 20, 2013 Source:SMM
SINGAPORE, June 20 - Gold fell for a fourth straight session on Thursday to its lowest in a month after the Federal Reserve said the U.S. economy was recovering strongly enough for the central bank to slow the pace of bond purchases later this year.
    
FUNDAMENTALS
* Spot gold fell 0.4 percent to $1,344.9 an ounce by 0013 GMT, after falling 1.2 percent on Wednesday. Bullion, which is down over 3 percent for the week, touched a low of $1,342.74 earlier in the session.
    
* U.S. gold fell over 2 percent to $1344.10.
    
* Fed Chairman Ben Bernanke's confirmation that the bank is getting closer to pulling back on its $85 billion in monthly asset purchases confirmed investor fears, sending stocks and bonds sharply lower and pushing benchmark Treasury yields to a 15-month high.
    
* Bernanke said the central bank will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year if the U.S. economy continued to show strength.  
    
* The bond purchases have helped support gold prices this year even as investors dumped bullion, which is typically seen as a hedge against inflation, in favour of stocks. 
    
* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell below 1,000 tonnes for the first time in 4 years. 
    
* SPDR holdings fell 0.2 percent to 999.56 tonnes on Wednesday from 1,001.66 tonnes on Tuesday, the lowest since February 2009. 
    
* Russian gold production rose by 8.3 percent in the first four months of 2013 compared to the same period of last year, the Gold Industrialists' Union said on Wednesday.
    
MARKET NEWS
* Japan's Nikkei shares opened down 1 percent on Thursday, while the U.S. dollar held firm.  
    
    DATA/EVENTS
    0658 France Markit Mfg Flash PMI Jun     
    0728 Germany Markit Mfg Flash PMI Jun    
    0758 EZ Markit Mfg flash PMI Jun          
    1230 U.S. Jobless claims Weekly          
    0145 China's HSBC flash PMI for June
    1400 U.S. Philly Fed business indx Jun   
    1400 U.S. Exist. home sales % chg May    
    1400 U.S. Existing home sales May        
  Precious metals prices 0013 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1344.90   -5.79   -0.43    -19.69
  Spot Silver        21.19   -0.12   -0.56    -30.02
  Spot Platinum    1404.24   -5.76   -0.41     -8.52
  Spot Palladium    686.72   -7.28   -1.05     -0.76
  COMEX GOLD AUG3  1344.10  -29.90   -2.18    -19.79         7537
  COMEX SILVER JUL3  --
  Euro/Dollar       1.3288
  Dollar/Yen         96.47
 
  COMEX gold and silver contracts show the most active months