Gold at 2-week high on weaker dollar, rate expectations

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Gold firmed for the fourth straight session on Monday to its highest in more than two weeks, as the dollar extended losses and expectations rose that the Federal Reserve will hold off until at least September to raise interest rates.

Gold had dipped to a four-month low before the Fed met last week as concerns mounted over higher U.S. interest rates, which could dent demand for non-interest-bearing bullion.

Spot gold hit its highest since March 6 at $1,190.70 an ounce and was up 0.7 percent, by 3:05 p.m. EDT (1705 GMT).

U.S. gold futures for April delivery settled up $3.10 at $1,187.70 an ounce.

The dollar fell 0.9 percent against a basket of leading currencies. It came under pressure after the Fed last week downgraded its economic growth and inflation projections, signaling it is in no rush to push borrowing costs to more normal levels.

Later in the day, Fed Vice Chair Stanley Fischer said the central bank is "widely expected" to begin raising interest rates this year, though the policy path remains uncertain.

Platinum rose 1.1 percent to $1,146.75 an ounce, while silver gained 1.4 percent at $16.96 an ounce and palladium was down 0.5 percent at $772.50 an ounce

Source : Reuters

Dollar Drops as Fischer Says Rate-Increase Path Won’t Be Smooth

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The dollar extended the biggest weekly decline in three years after Federal Reserve Vice Chairman Stanley Fischer said there won’t be a “smooth upward path” for interest rates even as the first increase may be warranted before the end of 2015.

The greenback dropped against all of its 16 major peers as Fischer, in remarks at the Economic Club of New York, said subsequent rate increases will be subject to economic and geopolitical events. While policy makers undermined the dollar last week when they cut projections for higher borrowing costs, the U.S. currency still is set for a ninth month of gains as the Fed moves toward raising rates while global peers including the European Central Bank are adding to stimulus.

The Bloomberg Dollar Spot Index fell 0.9 percent to 1,183.93 at 3:46 p.m. in New York after touching 1,183.90, the lowest level since March 6. It tumbled 2.2 percent last week, the biggest weekly decline since October 2011.

The dollar weakened 1.4 percent to $1.0970 per euro, after earlier strengthening as much as 0.5 percent. It slipped 0.3 percent to 119.71 yen.

Source : Bloomberg

Japan Stocks Fall First Time in Three Days on U.S. Rate Outlook

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Japanese stocks fell for the first time in three days as the yen held two days of gains amid speculation the Federal Reserve won’t hurry to raise interest rates.

The Topix index declined 0.3 percent to 1,587.30 as of 9:02 a.m. in Tokyo, after closing yesterday at a seven-year high. More than two stocks fell for each that rose. The Nikkei 225 Stock Average lost 0.2 percent to 19,702.42. The yen traded at 119.75 per dollar after Federal Reserve Vice Chairman Stanley Fischer said there won’t be a “smooth upward path” for U.S. interest rates, even with the first increase potentially warranted by late 2015.

Global equity values climbed by more than $2.4 trillion last week as Fed policy makers signaled a more gradual pace of monetary tightening than previously estimated. San Francisco Fed President John Williams speaks to economists in Sydney Tuesday after Fischer’s comments Monday to the Economic Club of New York.

E-mini futures on the Standard & Poor’s 500 Index added 0.1 percent after the underlying equity measure lost 0.2 percent Monday in New York.

Source: Bloomberg

U.S. Stocks Slip as Transports Decline Offsets Consumer Gains

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U.S. stocks retreated after the Standard & Poor’s 500 Index climbed within four points of a record, as a drop in transportation companies offset gains in consumer shares.

The Dow Jones Transportation Average dropped after railroad Kansas City Southern cut its outlook. The Nasdaq Biotechnology Index fell 2.2 percent after setting a record Friday.

The S&P 500 slipped 0.2 percent to 2,104.44 at 4 p.m. in New York. The Nasdaq Composite Index lost 0.3 percent.

The S&P 500 and Dow are less than 1 percent from records they last reached on March 2. The Nasdaq Composite jumped on Friday to a 15-year high, almost erasing its losses since the end of the dot-com bubble. The S&P 500 rose 2.7 percent last week, with the dollar weakening, as concern eased about an interest-rate increase.

Source : Bloomberg

Europe Stocks Drop After Nearing Record With Seventh Weekly Gain

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European stocks declined, after a seventh weekly gain pushed equities near an all-time high.

The Stoxx Europe 600 Index slid 0.7 percent to 401.24 at the close of trading, paring earlier losses of as much as 1 percent. The equity gauge ended Friday within 0.4 percent of its March 2000 record close, having surpassed the forecasts of 12 strategists surveyed by Bloomberg in January. The U.K.’s FTSE 100 Index, which climbed above 7,000 for the first time last week, added 0.2 percent today.

The Stoxx 600 exceeded its 2007 peak last week on speculation the Federal Reserve won’t rush to raise rates. It has rallied 17 percent this year amid optimism that stimulus from the European Central Bank will revive the region’s economy, while a weakening euro will boost profits. The rally propelled stocks on the gauge this month to the highest price relative to estimated earnings in at least a decade.

Investors also watched ECB President Mario Draghi’s address to the European Parliament. In an opening statement, he pushed aside concerns that the ECB’s quantitative-easing plan will be hampered by a shortage of bonds available to buy.

Source : Bloomberg