Gold Falls for Second Day Amid Bets Fed to Raise Interest Rates

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Gold futures fell for the second straight day amid speculation that the Federal Reserve will raise interest rates as the U.S. economy gains momentum, crimping demand for the metal as an alternate investment.

Global holdings in exchange-traded products backed by gold have extended a slump to the lowest in five years, according to data compiled by Bloomberg. Yesterday, a poll showed Swiss voters will reject an initiative that would require the nations central bank to hold at least 20 percent of assets in the metal.

Gold futures for December delivery declined 0.3 percent to settle at $1,190.90 an ounce at 1:37 p.m. on the Comex in New York. Aggregate trading was 49 percent above the 100-day average for this time, according to Bloomberg data. Yesterday, the metal dropped 0.3 percent.

The cost of living in the U.S. was little changed in October, and jobless claims fell by 2,000 in the week ended Nov. 15, government reports showed today.

Source: Bloomberg

Gold Futures Trade Below Two-Week High as Fed to Buying Weighed

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Gold futures traded little changed below a two-week high as investors weighed expectations for higher U.S. interest rates against signs of more physical buying.

The Bloomberg Dollar Spot Index traded near a five-year high on the outlook for Japan to extend a stimulus program and after minutes of the Federal Reserves Oct. 28-29 meeting showed the U.S. moving toward higher interest rates. Higher borrowing costs cut the allure of the metal which generally offers investors returns through rising prices and which is sometimes bought as an inflation hedge.

Gold for December delivery was little changed at $1,192.20 an ounce by 7:14 a.m. on the Comex in New York. Prices, which reached a three-day low yesterday, touched a two-week high of $1,204.10 on Nov. 18. Bullion for immediate delivery rose 0.8 percent to $1,192.44 in London, according to Bloomberg generic pricing.

Source : Bloomberg

U.S. Stocks Rises as Energy, Economy Outweigh Overseas Concerns

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U.S. stocks rose, led by energy companies and small-cap shares, as data showing improvements in the American economy overshadowed concern over weaker growth overseas.

The Standard & Poors 500 Index rose 0.2 percent to 2,052.68 at 4 p.m. in New York, erasing an earlier loss. The Russell 2000 Index of smaller companies climbed 1.1 percent.

Purchases of previously owned U.S. homes unexpectedly rose in October to a one-year high as low borrowing costs helped sustain the recovery in residential real estate. Other data showed fewer Americans filed for unemployment benefits last week as the need to retain staff keeps firings at the lowest levels in more than a decade.

Copy Source: Bloomberg

S&P 500 Rises on Economy Strength; Europe Stocks Fall on Data

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The Standard & Poors 500 Index rose, as data showing strength in the U.S. economy overshadowed reports of slowing manufacturing in Europe and China that sent industrial metals and European equities lower.

The S&P 500 added 0.2 percent at 12:27 p.m. in New York, erasing earlier losses of 0.4 percent as retailers and energy shares rallied. The gauge is poised for a record close. The Russell 2000 Index of small companies jumped 0.7 percent. The Stoxx Europe 600 Index closed lower by 0.3 percent, trimming a drop of 0.9 percent. The yield on 10-year Treasury notes lost two basis points to 2.34 percent. The Bloomberg Dollar Spot Index erased declines to trade little changed. Natural gas futures increased 1.4 percent, while copper slumped 0.6 percent.

Purchases of previously owned U.S. homes unexpectedly rose in October, while the Philadelphia Feds manufacturing index surged past estimates and an index of leading economic indicators climbed more than forecast. U.S. inflation was little changed in last month. Manufacturing and services in the euro area unexpectedly fell and a flash purchasing managers index for Chinese slid to 50, the borderline between expansion and contraction and below economists estimates.

Source: Bloomberg

European Stocks Decline With Miners as Manufacturing Slows

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European stocks declined as miners fell after manufacturing data missed economists estimates for the region and China.

The Stoxx Europe 600 Index dropped 0.3 percent to 338.28 at the close of trading. A gauge of mining stocks fell to its lowest level this year, with iron-ore producers BHP Billiton Ltd. and Rio Tinto Group losing more than 2.5 percent. National equity indexes of Spain and Italy dropped the most among 18 western-European markets.

A manufacturing gauge for the euro area fell to 50.4 in November, according to preliminary figures by London-based Markit Economics. Economists had forecast 50.8. A reading of 50 is the dividing line between expansion and contraction. In China, a factory measure dropped to a six-month low.

The Stoxx 600 pared losses of as much as 0.9 percent after U.S. data pointed to an improving economy. The Federal Reserve Bank of Philadelphias factory index climbed more than forecast, and sales of previously owned homes increased at a faster pace than projected.

A gauge of mining stocks slipped 1.6 percent for the worst performance among 19 industry groups on the Stoxx 600. It has lost 4 percent in the past three days.

Source: Bloomberg