PRECIOUS-Gold Drops again on Strong U.S. Data-Shanghai Metals Market

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PRECIOUS-Gold Drops again on Strong U.S. Data

Industry News 09:59:14AM Jun 26, 2013 Source:SMM
SINGAPORE, June 26 - Gold fell for a seventh session out of eight on Wednesday as strong U.S. economic data boosted stocks and supported the Federal Reserve's plan to scale back its bond purchases in the next few months.
    
FUNDAMENTALS
* Spot gold was down nearly 0.1 percent to $1,275.71 an ounce by 0010 GMT, sitting near three-year lows seen on Friday. U.S. gold rose slightly to $1,275.30.
    
* Gold's losses since the beginning of last week through Tuesday amount to 8 percent, or about $113 per ounce.
    
* Bullion prices have been sliding since Fed Chairman Ben Bernanke laid out a strategy to wind down the bank's $85 billion monthly bond purchases on the back of a recovering economy.
    
* U.S. consumer confidence jumped in June to its highest level in more than five years, while sales of new U.S. single-family homes rose to their highest level in nearly five years in May. 
    
* Further gains in global stock markets this year will be a signpost of more losses for gold, according to analysts, citing a re-established negative correlation between the two assets.
 
* India's central bank told rural regional banks on Tuesday they could no longer provide loans against gold jewellery and coins - the latest move to discourage gold buying as the government seeks to reduce a record current account deficit.
 
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 16.23 tonnes to 969.50 tonnes on Tuesday, to their lowest since February 2009.
 
* Holdings of the world's largest silver-backed exchange-traded funds have fallen their most in a year to levels last seen in December, sparking fears that mom-and-pop investors have started to unwind investments after last week's rout.
    
MARKET NEWS
* The dollar index rose further, while Asian shares opened higher. U.S. stocks rose by the most in nearly two weeks on Tuesday. 
 
    DATA/EVENTS (GMT) 
    0600 Germany GfK consumer sentiment 
    1230 U.S. Final Q1 GDP 
 Precious metals prices 0010 GMT
 Metal             Last    Change  Pct chg  YTD pct chg    Volume
 Spot Gold        1275.71   -1.03   -0.08    -23.82
 Spot Silver        19.57   -0.01   -0.05    -35.37
 Spot Platinum    1344.24   -5.76   -0.43    -12.43
 Spot Palladium    661.50   -1.24   -0.19     -4.41
 COMEX GOLD AUG3  1275.30    0.20   +0.02    -23.90         1465
 COMEX SILVER JUL3  19.55    0.02   +0.12    -35.49          270
 Euro/Dollar       1.3080
 Dollar/Yen         98.03
 
 COMEX gold and silver contracts show the most active months
 

PRECIOUS-Gold Drops again on Strong U.S. Data

Industry News 09:59:14AM Jun 26, 2013 Source:SMM
SINGAPORE, June 26 - Gold fell for a seventh session out of eight on Wednesday as strong U.S. economic data boosted stocks and supported the Federal Reserve's plan to scale back its bond purchases in the next few months.
    
FUNDAMENTALS
* Spot gold was down nearly 0.1 percent to $1,275.71 an ounce by 0010 GMT, sitting near three-year lows seen on Friday. U.S. gold rose slightly to $1,275.30.
    
* Gold's losses since the beginning of last week through Tuesday amount to 8 percent, or about $113 per ounce.
    
* Bullion prices have been sliding since Fed Chairman Ben Bernanke laid out a strategy to wind down the bank's $85 billion monthly bond purchases on the back of a recovering economy.
    
* U.S. consumer confidence jumped in June to its highest level in more than five years, while sales of new U.S. single-family homes rose to their highest level in nearly five years in May. 
    
* Further gains in global stock markets this year will be a signpost of more losses for gold, according to analysts, citing a re-established negative correlation between the two assets.
 
* India's central bank told rural regional banks on Tuesday they could no longer provide loans against gold jewellery and coins - the latest move to discourage gold buying as the government seeks to reduce a record current account deficit.
 
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 16.23 tonnes to 969.50 tonnes on Tuesday, to their lowest since February 2009.
 
* Holdings of the world's largest silver-backed exchange-traded funds have fallen their most in a year to levels last seen in December, sparking fears that mom-and-pop investors have started to unwind investments after last week's rout.
    
MARKET NEWS
* The dollar index rose further, while Asian shares opened higher. U.S. stocks rose by the most in nearly two weeks on Tuesday. 
 
    DATA/EVENTS (GMT) 
    0600 Germany GfK consumer sentiment 
    1230 U.S. Final Q1 GDP 
 Precious metals prices 0010 GMT
 Metal             Last    Change  Pct chg  YTD pct chg    Volume
 Spot Gold        1275.71   -1.03   -0.08    -23.82
 Spot Silver        19.57   -0.01   -0.05    -35.37
 Spot Platinum    1344.24   -5.76   -0.43    -12.43
 Spot Palladium    661.50   -1.24   -0.19     -4.41
 COMEX GOLD AUG3  1275.30    0.20   +0.02    -23.90         1465
 COMEX SILVER JUL3  19.55    0.02   +0.12    -35.49          270
 Euro/Dollar       1.3080
 Dollar/Yen         98.03
 
 COMEX gold and silver contracts show the most active months