Gold falls as U.S. breaks budget deadlock-Shanghai Metals Market

Hot Keywords

  • Inventory data
  • NPI
  • Zinc
  • Production data
  • Market commentary
  • Macroeconomics
  • Morning comments
  • Stainless steel
  • Mengtai Group
  • Aluminium
  • Copper
  • Nickel
  • Futures movement
  • hydrogen stations
  • trade negotiations

Gold falls as U.S. breaks budget deadlock

Industry News 04:15:22PM Oct 17, 2013 Source:SMM

Thu, 17 Oct 06:57:00 GMT

* Congress passes temporary spending bill
* Asian shares rise, dollar slips [MKTS/GLOB]
* Traders await economic data, stimulus outlook

(Updates prices)

By A. Ananthalakshmi

SINGAPORE, Oct 17 (Reuters) - Gold slipped on Thursday, with its safe-haven appeal dimming after U.S. lawmakers passed a spending bill to avert a historic debt default and end a two-week government shutdown.

But the deal only funds the government until Jan. 15 and increases the debt ceiling until Feb. 7, raising the possibility of another shutdown early next year. [ID:nL1N0I604P]

Spot gold had fallen 0.3 percent to $1,277.71 an ounce by 0630 GMT, with stronger Asian stock markets also dragging.

"Over the next few weeks, markets will tend to be pretty cautious because this is just kicking the can down the road," said Victor Thianpiriya, an analyst at ANZ.

"The sentiment for gold is still quite bearish with outflows from exchange traded funds and the risk sentiment pretty weak. It is hard to see reasons why gold will be higher."

Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, on Wednesday fell 3.6 tonnes to fresh four-year lows at 885.53 tonnes. [GOL/ETF]

The fund has seen over 400 tonnes in outflows this year, dampening investor sentiment.

Gold has declined about 4 percent since the government shutdown began on Oct. 1, dropping below $1,300 an ounce, as it failed to generate strong safe-haven bids. Traders said markets had not priced in a default as they always expected the United States to come up with a last-minute agreement.

With the passing of the deal, investors will turn their focus to key economic data - which had not been released due to the shutdown - to determine the impact of the impasse on the economy and the Federal Reserve's stimulus measures.

Physical demand continued to remain strong with premiums in India and China rising.

Demand for U.S. gold coins surged in October, reversing recent weak sales, boosted by bargain-hunting as prices fell below $1,300 an ounce. [ID:nL1N0I61CG]


Precious metals prices 0630 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1277.71 -3.28 -0.26 -23.70

Spot Silver 21.17 -0.17 -0.80 -30.09

Spot Platinum 1391.99 4.09 +0.29 -9.32

Spot Palladium 711.97 -2.03 -0.28 2.89

COMEX GOLD DEC3 1277.30 -5.00 -0.39 -23.78 18214

COMEX SILVER DEC3 21.19 -0.18 -0.82 -30.08 7821

Euro/Dollar 1.3559

Dollar/Yen 98.39


COMEX gold and silver contracts show the most active months

 

(Reporting by A. Ananthalakshmi; Editing by Richard Pullin and Joseph Radford)

((ananthalakshmi.as@thomsonreuters.com)(+65 8511 8272)(Reuters Messaging: ananthalakshmi.as.thomsonreuters.com@reuters.net))


 

Key Words:  MARKETS PRECIOUS 

Gold falls as U.S. breaks budget deadlock

Industry News 04:15:22PM Oct 17, 2013 Source:SMM

Thu, 17 Oct 06:57:00 GMT

* Congress passes temporary spending bill
* Asian shares rise, dollar slips [MKTS/GLOB]
* Traders await economic data, stimulus outlook

(Updates prices)

By A. Ananthalakshmi

SINGAPORE, Oct 17 (Reuters) - Gold slipped on Thursday, with its safe-haven appeal dimming after U.S. lawmakers passed a spending bill to avert a historic debt default and end a two-week government shutdown.

But the deal only funds the government until Jan. 15 and increases the debt ceiling until Feb. 7, raising the possibility of another shutdown early next year. [ID:nL1N0I604P]

Spot gold had fallen 0.3 percent to $1,277.71 an ounce by 0630 GMT, with stronger Asian stock markets also dragging.

"Over the next few weeks, markets will tend to be pretty cautious because this is just kicking the can down the road," said Victor Thianpiriya, an analyst at ANZ.

"The sentiment for gold is still quite bearish with outflows from exchange traded funds and the risk sentiment pretty weak. It is hard to see reasons why gold will be higher."

Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, on Wednesday fell 3.6 tonnes to fresh four-year lows at 885.53 tonnes. [GOL/ETF]

The fund has seen over 400 tonnes in outflows this year, dampening investor sentiment.

Gold has declined about 4 percent since the government shutdown began on Oct. 1, dropping below $1,300 an ounce, as it failed to generate strong safe-haven bids. Traders said markets had not priced in a default as they always expected the United States to come up with a last-minute agreement.

With the passing of the deal, investors will turn their focus to key economic data - which had not been released due to the shutdown - to determine the impact of the impasse on the economy and the Federal Reserve's stimulus measures.

Physical demand continued to remain strong with premiums in India and China rising.

Demand for U.S. gold coins surged in October, reversing recent weak sales, boosted by bargain-hunting as prices fell below $1,300 an ounce. [ID:nL1N0I61CG]


Precious metals prices 0630 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1277.71 -3.28 -0.26 -23.70

Spot Silver 21.17 -0.17 -0.80 -30.09

Spot Platinum 1391.99 4.09 +0.29 -9.32

Spot Palladium 711.97 -2.03 -0.28 2.89

COMEX GOLD DEC3 1277.30 -5.00 -0.39 -23.78 18214

COMEX SILVER DEC3 21.19 -0.18 -0.82 -30.08 7821

Euro/Dollar 1.3559

Dollar/Yen 98.39


COMEX gold and silver contracts show the most active months

 

(Reporting by A. Ananthalakshmi; Editing by Richard Pullin and Joseph Radford)

((ananthalakshmi.as@thomsonreuters.com)(+65 8511 8272)(Reuters Messaging: ananthalakshmi.as.thomsonreuters.com@reuters.net))


 

Key Words:  MARKETS PRECIOUS