Gold tumbles 2 pct to four-year low, $1,000/oz exposed

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Gold sank about 2 percent on Wednesday to its lowest since mid-2010, potentially opening the way for a fall to $1,000 as a surging U.S. dollar weakened the investment case for non-yielding bullion.

Silver's fall as much as 5 percent to its weakest since February 2010 at just above $15 an ounce.

Spot gold skidded to its lowest since April 2010 at $1,137.40 an ounce and was trading down 1.8 percent at $1,146.50 by 2:48 p.m. EST (1948 GMT).

Technical analysts said a test of the $1,000 level could be on the cards following a break of support at $1,150 an ounce, a key retracement level.

U.S. COMEX gold futures settled down $22 an ounce at $1,145.70. Trading volume was about 270,000 lots, nearly doubling its 30-day average, and set to the highest turnover since Friday, preliminary Reuters data shows.

The metal has lost around $100 an ounce over the past week, rekindling memories of a stunning two-day drop last year that started a huge wave of divestment and a surprise double-digit annual price dive after 12 years of gains.

Silver was down 3.6 percent at $15.43 in late afternoon business, paring losses after hitting $15.13, its lowest since mid-2010.

Source : Reuters

Dollar Rallies to 7-Year High as Economic Outlook Brightens

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The dollar rose to its strongest level in seven years against the yen, boosted by signs of strength in the U.S. economy and midterm elections that saw Republicans take control of the Senate.

Japans currency fell versus most of its 31 major peers after Bank of Japan Governor Haruhiko Kuroda said he saw no limit to the steps officials can take to defeat deflation. The Bloomberg Dollar Spot Index headed for its highest close since April 2009 as a private report showed employers added more workers than forecast last month. Currencies of commodity-producing nations slumped as crude oil reached a four-year low.

The dollar jumped 1 percent to 114.70 yen as of 8:58 a.m. New York time, after rising to 114.84, the strongest level since November 2007. The U.S. currency appreciated 0.4 percent to $1.2494 per euro, while the yen slumped 0.5 percent to 143.28 per euro.

Bloombergs dollar index, which tracks the currency against 10 major peers, added 0.5 percent to 1,091.30, extending this years advance to 7.1 percent, the most since 2008.

Source : Bloomberg

Japan’s Topix Rises Sixth Day as Yen Extends Loss on U.S. Jobs

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Japanese stocks rose, with the Topix index heading for the longest winning streak since August, after the yen fell to a seven-year low and U.S. companies added more workers than forecast.

The Topix advanced 0.2 percent to 1,374.24 as of 9:05 a.m. in Tokyo, rising for a sixth day after closing yesterday at its highest level since 2008. The Nikkei 225 Stock Average rose 0.2 percent to 16,965.24. U.S. stocks gained after Republicans won their first Senate majority in eight years.

Futures on the Standard & Poors 500 Index slipped 0.1 percent today. The equity measure climbed 0.6 percent yesterday to a record after Republicans retained control of the House and won enough seats to reclaim a Senate majority held by Democrats since 2006.

The Topix advanced 7.3 percent over the past three trading sessions after the Bank of Japan expanded stimulus and the nations pension fund said it will boost its stock holdings. The Nikkei Stock Average Volatility Index, tracking the cost of options prices on the Nikkei 225, slumped 10 percent yesterday.

Source : Bloomberg

U.S. Stocks Advance on Republican Victory, ADP Employment Report

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U.S. stocks rose, sending benchmark indexes to records, as Republicans won their first Senate majority in eight years and data showed companies added more workers in October.

The Standard & Poors 500 Index climbed 0.6 percent to 2,023.44 at 4 p.m. in New York, a record closing level. The Dow Jones Industrial Average added 100.69 points, or 0.6 percent, to 17,484.53.

Republicans retained control of the House and won enough seats to reclaim a Senate majority held by Democrats since 2006. They will control both for the remainder of President Barack Obamas term.

Source : Bloomberg

U.S. Stocks Retreat as Energy Companies Drop With Price of Oil

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U.S. stocks retreated, following the biggest weekly rally since January 2013, as energy  producers led losses after oil dipped below $80 a barrel.

Halliburton Co., Newfield Exploration Co. and Nabors Industries Ltd. fell more than 5.5 percent to lead losses in energy companies. Merck & Co. slid 2.8 percent after cutting the top end of its sales forecast. Sarepta Therapeutics Inc. plunged 36 percent after saying regulators require more data on a new drug proposal.

The Standard & Poors 500 Index slipped 0.3 percent to 1,958.51 at 12:47 p.m. in New York. Equities pared losses after the European Central Bank said it settled 1.704 billion euros ($2.2 billion) of covered-bond purchases last week as it started its latest effort to revive the euro-area economy. The Dow Jones Industrial Average was down 32.65 points at 16,772.76. The Russell 2000 Index retreated 0.5 percent.

Source : Bloomberg