Yen Holds Near Two-Month High Versus Dollar Amid Risk Aversion

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Japan��s currency was near a two-month high versus the dollar as fighting in Ukraine and anti-China violence in Vietnam prompted demand for safety.


The yen held a three-day gain as the yield premium 10-year U.S. Treasuries offer over similar-maturity Japanese government bonds was near a seven-month low. Federal Reserve Chair Janet Yellen speaks this week and a Labor Department report on May 22 is forecast to show the number of Americans applying for jobless benefits increased. The euro traded near more-than-two-month lows versus the yen and the greenback as speculators turned bearish on the 18-nation currency.


The yen traded at 101.58 per dollar at 11:53 a.m. in Tokyo from 101.50 at the end of last week, having gained 0.7 percent in the previous three sessions. It touched 101.32 on May 15, the strongest since March 19. Japan��s currency fetched 139.23 per euro from 139 on May 16, when it reached 138.78, the strongest since Feb. 12. The euro was little changed at $1.3707 after touching $1.3648 on May 15, the least since Feb. 27.


Source : Bloomberg

Gold Holds Below $1,300 as U.S. Economy Weighed Against Ukraine

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Gold held below $1,300 an ounce as investors assessed the health of the U.S. economy and the impact on monetary stimulus against tension in Ukraine.

Bullion for immediate delivery traded at $1,294.06 an ounce at 9:42 a.m. in Singapore from $1,293.52 on May 16, according to Bloomberg generic pricing. Last week, the metal completed the first weekly gain in three as separatists fought government forces in Ukraine.

Gold tumbled 28 percent in 2013 to end a 12-year rally on expectations the Federal Reserve would cut asset purchases as the economy recovers. The Fed has announced reductions at each of the past four meetings. Data this week may show more Americans applied for jobless benefits after last week��s report showed unemployment claims fell to the lowest in seven years.

Gold has advanced 7.7 percent this year in part as increasing tension in Ukraine fueled haven demand. In Vietnam, China is evacuating its citizens as Vietnamese authorities thwarted anti-China protests after violent demonstrations resulted in two deaths and damage at factories. The violence was spurred by anger over a Chinese oil rig in disputed waters.

Gold for June delivery traded at $1,292.20 an ounce on the Comex in New York from $1,293.40 on May 16. Assets in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, were at 781.98 metric tons on May 16 after dropping to 780.46 tons on May 12, the lowest since January 2009.

Silver for immediate delivery fell 0.3 percent to $19.323 an ounce. Platinum was at $1,463.25 an ounce from $1,464.94, after climbing to $1,486 on May 14, the highest price since March 7. Palladium traded at $815.35 an ounce from $815.44, after reaching $829.25 on May 14, the highest level since August 2011.

Source : Bloomberg

Gold Caps Biggest Weekly Gain This Month as U.S. Confidence Sags

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Gold futures posted the biggest weekly gain this month as an unexpected decline in consumer confidence rekindled U.S. growth concerns, boosting demand for haven assets.

The Thomson Reuters/University of Michigan preliminary sentiment index decreased to 81.8 in May from 84.1 in April, data released showed today. The median projection in a Bloomberg survey of economists called for a gain to 84.5. The Standard & Poor��s 500 Index of stocks fell as much as 0.3 percent. Gold jumped 7.8 percent in the first four months of 2014 amid tension in Ukraine and concern that the U.S. economy was slowing.

Gold futures for June delivery fell less than 0.1 percent to settle at $1,293.40 an ounce at 1:41 p.m. on the Comex in New York. The metal rose 0.5 percent this week, the most since April 25.

The top U.S. and U.K. diplomats vowed to punish Russia with industrywide sanctions if this month��s Ukrainian presidential election is undermined, as the Kiev government��s forces moved to flush out separatists in the east.

Source : Bloomberg