Dolar Mixed in Asia Trading

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The dollar was mixed in Asia on Tuesday with few immediate trading cues to move markets, after sentiment got a boost from an upbeat US jobs report and better-than-expected Japan growth figures.

In Tokyo midday trading, the greenback weakened to 102.35 yen from 102.53 yen on Monday in New York, while the euro drifted lower to 139.10 yen against 139.35 yen.

The European single currency slipped to $1.3588, compared with $1.3592 in US trade.

Dealers said the morning decline in Japan's benchmark Nikkei 225 stock index was a key factor in driving down the dollar-yen rate.

The dollar-yen rate and Tokyo's stock market are closely linked, with the value of the yen directly affecting Japanese exporters' profitability.

On Friday, the Labor Department said the US economy added 217,000 jobs in May, while unemployment held at a multi-year low of 6.3 percent, unchanged from April.

That was followed on Monday by revised data that showed Japan's economy grew a better-than-expected 1.6 percent in the first quarter, its fastest pace in more than two years.

A marked improvement in Chinese manufacturing and trade has also helped to boost sentiment.

On Tuesday, investors were keeping an eye on new data that showed Chinese inflation surging to a four-month high of 2.5 percent in May, although it was still below the government's 3.5 percent target.

Dealers were also looking ahead to a Bank of Japan policy meeting later this week.

Source : AFP

Gold Holds Above 4-Month Low as Equity Rally

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Gold held above the lowest level in four months on speculation that price declines after a rally in equity markets may spur purchases.

Gold for immediate delivery advanced 0.2 percent to $1,254.94 an ounce by 2:17 p.m. in Singapore, according to Bloomberg generic pricing. Bullion fell to $1,240.73 on June 3, the lowest since Jan. 31, as signs of an economic recovery in the U.S. drove the Standard & Poor��s 500 Index to a record.

The metal slid 3.3 percent in May, the biggest monthly drop this year, in part as tension eased between Ukraine and Russia and as the euro weakened on speculation that the European Central Bank will add to stimulus. Data this week may show U.S. retail sales rose after Federal Reserve Bank of Boston President Eric Rosengren said economic growth will be stronger in the second half amid œpretty strong consumption.

Gold for August delivery added 0.1 percent to $1,255.10 on the Comex in New York. In China, the world��s largest bullion consumer, volumes for the benchmark spot contract in Shanghai were 10,615 kilograms yesterday, rising from a two-month low of 8,568 kilograms on June 6.

Source : Bloomberg

WTI Rises for Third Day as Supplies Seen Shrinking

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West Texas Intermediate gained for a third day amid speculation that crude stockpiles declined for a second week in the U.S., the world��s biggest oil consumer. Brent was steady in London.

Futures rose as much as 0.4 percent in New York. Crude supplies probably fell by 1.5 million barrels in the week ended June 6, according to a Bloomberg News survey before data from the Energy Information Administration tomorrow. Rebels in Libya, the holder of Africa��s largest oil reserves, withdrew a threat to shut two export terminals after Prime Minister Ahmed Maiteg agreed to step down.

WTI for July delivery increased as much as 44 cents to $104.85 a barrel in electronic trading on the New York Mercantile Exchange and was at $104.69 at 11:48 a.m. Sydney time. The contract climbed $1.75 to $104.41 yesterday, the highest close since March 3. The volume of all futures traded was about 35 percent above the 100-day average. Prices have advanced 6.4 percent this year.

Brent for July settlement was 11 cents higher at $110.10 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $5.38 to WTI, compared with $5.58 yesterday.

U.S. crude stockpiles probably dropped to about 388 million barrels, according to the median estimate in the Bloomberg survey of six analysts. Gasoline inventories are forecast to have expanded by 1 million.

Source : Bloomberg

Gold Advances as Lower European Sentiment Boosts Haven Demand

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Gold futures gained for the second time in three sessions as lower investor confidence in Europe boosted demand for the precious metal as a haven.

German investor optimism for the euro zone in June fell to 8.5, trailing the 13.3 estimate of economists surveyed by Bloomberg and May��s 12.8 reading, according to Sentix in Limburg, Germany. The region��s 18-nation common currency dropped against 13 of its 16 major counterparts.

Gold gained 6.8 percent in the first quarter on concern that global economic growth was stalling. The metal slid 28 percent last year on expectations that the Federal Reserve would lower the pace of bond purchase and as equities surged. The Fed has made four straight $10 billion cuts.

Gold futures for August delivery added 0.1 percent to settle at $1,253.90 an ounce at 1:38 p.m. on the Comex in New York. On June 3, prices fell to a four-month low of $1,240.20.

Trading was 64 percent below the average for the past 100 days for this time, according to data compiled by Bloomberg. Bullion��s 60-day historical volatility fell to the lowest since April 2013.

Holdings in gold-backed exchange-traded products fell 2.1 metric tons to 1,715.7 tons on June 6, the lowest since October 2009, data compiled by Bloomberg show.

Copy Source: Bloomberg