Gold Extends Gain to One-Month High as U.S. Wages Stall Dollar

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Gold rose to the highest level in a month after a report on U.S. wages raised concern that the economy may not be strong enough for the Federal Reserve to start increasing interest rates, hurting the dollar for a second day.

Bullion for immediate delivery advanced as much as 0.3 percent to $1,226.95 an ounce, the highest price since Dec. 12, and traded at $1,226.94 at 9:20 a.m. in Singapore, according to Bloomberg generic pricing. The metal climbed 1.2 percent on Jan. 9 to cap the biggest weekly gain since June as assets in the SPDR Gold Trust, the world™s largest exchange-traded product backed by bullion, rose the most since July.

The Bloomberg Dollar Spot Index fell for a second day, extending losses from a record close on Jan. 8, after data on Jan. 9 showed average hourly earnings for all U.S. employees fell in December by the most since comparable records began in 2006. Gold last year posted the first back-to-back annual drop since 2000 on speculation the Fed will raise borrowing costs this year as the economy improves. Additional data on Jan. 9 showed that U.S. employers added 252,000 jobs last month.

Gold for February delivery gained as much as 0.9 percent to $1,226.90 an ounce on the Comex in New York, the highest since Dec. 12, and was at $1,226.80. Most-active prices climbed 2.5 percent last week.

Silver for immediate delivery rose 0.8 percent to $16.6295 an ounce, after posting the first weekly increase in four weeks. Spot platinum was at $1,233.75 an ounce from $1,233.31 on Jan. 9, and palladium lost 0.1 percent to $802.30 an ounce.

Source : Bloomberg

Yen Advances as Dollar Extends Weakness on Wage-Growth Concern

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The yen rose toward its highest level since December versus the dollar as concern lingered that the U.S. labor market is too weak for the Federal Reserve to start raising interest rates.

The dollar retreated from near multi-year highs against the Aussie and euro as traders weighed a U.S. jobs report showing incomes declined in December. Speculators boosted wagers on the U.S. currency versus eight of its major peers to a record high before the U.S. releases consumer-price data Jan. 16. The euro touched a nine-year low versus the greenback last week and today slipped to its weakest since October against the yen as an official said European Central Bank policy makers met to discuss government-bond purchases.

Japan™s currency rose 0.2 percent to 118.28 per dollar as of 9:14 a.m. in Singapore and touched 118.13, the highest level since the 118.06 reached Jan. 6 that was the strongest since Dec. 17.

Japanese markets are closed today for a holiday. The yen reached 121.85 on Dec. 8, the weakest level since July 2007.

The euro advanced 0.2 percent to $1.1863, after last week dropping to a nine-year low of $1.1754. Australia™s dollar climbed 0.3 percent to 82.24 U.S. cents, 2.4 percent higher than the 5 1/2-year low touched Jan. 7.

Source : Bloomberg

Most Asian Stocks Retreat on Low Volume After U.S. Wages Decline

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Most Asian stocks fell amid concern Europe™s stimulus plans may not solve the euro region™s economic woes and after an unexpected drop in American wages clouded the outlook for U.S. interest rates.

Two stocks dropped for each that rose on the MSCI Asia Pacific excluding Japan Index, which was little changed at 470.28 as of 9:07 a.m. in Seoul. Markets in Tokyo are closed for a holiday. U.S. and European stocks drove down a gauge of global equities for the first time in three days Jan. 9 on concern increased bond buying by the European Central Bank won™t be enough to shore up the economy and after data showed hourly earnings in the U.S. fell the most on average since records began in 2006.

Australia™s S&P/ASX 200 Index fell 0.5 percent, with volume 42 percent below the 30-day intraday average, while New Zealand™s NZX 50 Index added 0.3 percent. South Korea™s Kospi index retreated 0.2 percent. Markets in Hong Kong and mainland China are yet to open.

While Federal Reserve officials agree they are unlikely to raise key interest rates before late April, some officials are concerned inflation could remain below target given the retreat in oil prices, according to minutes of the central bank™s December meeting released last week.

Source : Bloomberg