Gold slips from four-month high, haven appeal lends support

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Gold eased from four-month highs on Monday as investors cashed in some of last week's hefty gains, though prices were still supported by wider market volatility that boosted the metal's appeal as a haven from risk.

A market rout after Switzerland unexpectedly abandoned a cap on the franc last week triggered strong bids for gold, often seen as an alternative to risky assets, sending prices to their highest since September at $1,281.50.

Spot gold was down 0.4 percent at $1,274.61 an ounce at 1652 GMT, while U.S. gold futures for February delivery were down $1.50 an ounce at $1,275.40. Spot gold is up nearly 8 percent this year.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, climbed 13.7 tonnes to 730.89 tonnes on Friday, its biggest one-day inflow in nearly 3-1/2 years.

Speculators raised their net long position in gold for the third straight week, ending Jan. 13, U.S. Commodity Futures Trading Commission data showed on Friday.

Silver was down 0.3 percent at $17.68 an ounce, while platinum was flat at $1,263.25 and palladium up 0.4 percent at $754.22.

Palladium bucked the trend for precious metals last week, falling more than 6 percent.

Source: Reuters

Gold Trades Above Platinum as Bullion ETPs Gain on Haven Demand

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Gold traded at the biggest premium to platinum since April 2013 as bullion was near a four-month high amid demand for a haven.

An ounce of gold bought as many as 1.012 ounces of platinum in London today, data compiled by Bloomberg show. The ratio had mostly held below 1 since April 2013. Holdings in gold-backed exchange-traded products jumped 26.2 metric tons in the two days through Jan. 16, the biggest advance since 2011.

Bullion climbed 4.7 percent last week, the most since August 2013, after the Swiss National Bank decided to let the currency trade freely against the euro and deepened negative deposit rates. Chinese equities lost the most since 2008 today and the European Central Bank may announce additional stimulus measures at a meeting this week.

Gold for immediate delivery lost 0.3 percent to $1,277.14 an ounce by 11:15 a.m. in London, after reaching $1,283 earlier today, the highest since Sept. 2. Platinum fell 0.3 percent to $1,263.25. U.S. financial markets are closed for Martin Luther King Day.

A slump in commodity prices has raised speculation that the Federal Reserve may hold back from increasing its key rate, which has been kept near zero since 2008, as data has showed inflation held below the central bank™s 2 percent target. ECB policy makers meet Jan. 22, three days before Greek elections that™s spurred concern the country may exit the currency bloc.

Silver for immediate delivery declined 0.5 percent to $17.6978 an ounce, reversing an advance to $18.0075 earlier today, the highest since Sept. 19. Prices climbed 7.8 percent last week, the most since August 2013. Palladium rose 1.1 percent to $765.90 an ounce.

Source : Bloomberg

Japanese Stocks Rise as Amid Yen Weakness Ahead of BOJ Meeting

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Japanese stocks rose for a second day, led by steel producers, as the yen held losses against the dollar ahead of a policy meeting by the Bank of Japan.

The Topix index added 0.3 percent to 1,376.67 as of 9:01 a.m. in Tokyo, with all but four of its 33 industry groups rising. The Nikkei 225 Stock Average gained 0.4 percent to 17,085.56. The yen weakened 0.1 percent to 117.71 per dollar. Futures on the Standard & Poor™s 500 Index slipped 0.2 percent today. U.S. markets were closed Monday for Martin Luther King Day.

The BOJ meets today and tomorrow in Tokyo with all 33 economists surveyed by Bloomberg News forecasting no change to monetary policy after it boosted an already unprecedented bond-buying program in October. The European Central Bank also meets, with speculation it will announce additional stimulus measures on Jan. 22. China publishes data on economic growth, industrial production and retail sales today after a tightening of margin lending regulation drove an equity rout.

Source: Bloomberg

European Stocks Rise Third Day Amid Expectations of ECB Stimulus

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European stocks advanced for a third day, extending their highest level since 2008, amid investor expectations the European Central Bank will announce a plan for quantitative easing this week.

The Stoxx Europe 600 Index added 0.2 percent to 353.18 at the close of trading. The equity gauge pared gains in the final hour after earlier increasing as much as 0.7 percent. Stocks climbed to a 7-year high on Friday as rising oil producers outweighed a slump in Swiss shares. Switzerland™s SMI Index rebounded 3.2 percent today after posting its worst week since 2008 following the Swiss National Bank™s surprise move to end a cap on the franc.

Source : Bloomberg

European Stocks Little Changed Amid Expectations of ECB Stimulus

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European stocks were little changed, paring earlier gains, amid investor expectations of an announcement on quantitative easing from the European Central Bank this week.

The Stoxx Europe 600 Index added less than 0.1 percent to 352.52 at 9:42 a.m. in London, after earlier gaining as much as 0.5 percent. Stocks climbed to a 7-year high on Friday as rising oil producers outweighed a slump in Swiss shares. Switzerland™s SMI Index rebounded 3.2 percent today after posting its worst week since 2008 following the Swiss National Bank™s surprise move to end a cap on the franc.

Mario Draghi will make his biggest push yet to steer the euro area away from deflation by announcing quantitative easing on Jan. 22, according to 93 percent of respondents in a Bloomberg News survey. The ECB president will probably announce a 550 billion-euro ($639 billion) bond purchase program, economists say. That would top the 500 billion euros in models presented to officials this month.

U.S. stocks markets are closed for Martin Luther King Jr. Day. Asian shares gained, even as China™s Shanghai Composite Index headed for its biggest drop since 2008, after three of the nation™s biggest brokerages were stopped from adding margin-trading accounts.

Source : Bloomberg