Gold drops further in longest losing streak in nearly 7 months

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Gold slid for a fifth straight session on Monday, in its longest losing streak since November, as investor sentiment was hurt by stronger global equities and weak physical demand in Asia.

Spot gold eased 0.3 percent to $1,247.20 an ounce by 08:28 Singapore. It wasn't too far from a 4-month low of $1,241.99 hit on Friday.

The 5-day fall is the metal's longest losing streak since October-November when it fell for seven straight days.

Gold is often seen as an investment-hedge to riskier assets such as equities. Global equity markets traded mostly flat on Friday but the Dow and S&P 500 set fresh closing highs.

Hedge funds and money managers cut their bullish bets in gold futures and options in the latest week to their lowest level in nearly four months, according to data from the Commodity Futures Trading Commission on Friday.

U.S. gold coin sales in May fell slightly from a month earlier amid lacklustre retail buying interest, U.S. Mint data showed, although dealers expect this week's drop in spot prices to spur some bargain hunting by collectors.

The U.S. Mint said it will cease rationing its popular American Eagle silver bullion investment coins, as retail investment demand has waned.

Gold premiums in India almost halved last week on hopes the new government would ease restrictions on imports of the precious metal, while demand in the rest of Asia failed to pick up despite a drop in prices.

Key physical markets of Hong Kong and China are shut on Monday for a public holiday.

For the week, markets are also eyeing key economic data such as U.S. non-farm payrolls

Source: Reuters

Gold Extends Drop as Equities Rally, Hedge Funds Cut Bull Bets

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Gold extended its biggest weekly drop since March after the Standard & Poor��s 500 Index climbed to a record and hedge funds pared bets on a rally in the metal at the fastest pace this year as demand for a haven declined.

Bullion for immediate delivery lost as much as 0.3 percent to $1,246.50 an ounce and was at $1,247.84 by 12:27 p.m. in Singapore, according to Bloomberg generic pricing. Gold dropped 3.3 percent last week, touching $1,242.33 on May 30, the lowest since Feb. 3. The metal for August delivery rose 0.1 percent to $1,247.60 an ounce on the Comex in New York.

The S&P 500 closed at an all-time high of 1,923.57 on May 30, advancing 4.1 percent this year. Money managers trimmed their net-long position by 24 percent in the week to May 27, U.S. Commodity Futures Trading Commission data show. Assets in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, contracted for a second month after dropping to 776.89 tons on May 21, the lowest since December 2008.

Gold rallied 3.8 percent this year partly as tension in Ukraine spurred haven demand. A majority of the Russian forces have been withdrawn from the Ukrainian border, Rear Admiral John Kirby, a Pentagon spokesman, told reporters on May 30.

Source: Bloomberg

Dollar Rises Before U.S. Manufacturing, Euro-Area Inflation Data

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The dollar strengthened before a U.S. report that analysts say will show manufacturing expanded at the fastest pace this year, highlighting the economic differences in the nation and the euro area.

The euro was near its lowest level in three months versus the greenback before data tomorrow predicted to cement the mix of slow inflation and near-record unemployment that may spur the European Central Bank to act. The yen declined amid speculation Japanese pension funds will increase foreign asset purchases, weakening the local currency. Australia��s dollar dropped as house prices and building permits slid.

The dollar rose 0.3 percent to 102.04 yen as of 1:36 p.m. in Tokyo. It traded at $1.3629 per euro from $1.3635 on May 30 after touching $1.3586 the previous day, the strongest since Feb. 13. The euro rose 0.2 percent to 139.06 yen following a 2.1 percent slide in May.

In the U.S., the Institute for Supply Management��s manufacturing index rose to 55.5 in May, the strongest so far this year, from 54.9 the previous month, economists forecast in a Bloomberg survey before today��s figures.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, rose 0.1 percent to 1,011.85, set for the first advance in three days.

Source : Bloomberg