Gold Posts First Weekly Decline in Three on Fed Taper Concern

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Gold fell, capping the first weekly drop in three weeks, on speculation that the Federal Reserve will curb monetary stimulus as the U.S. economy recovers, crimping demand for the metal as an alternative investment.

Policy makers trimmed bond purchases last week for the fourth time since November. Fed Chair Janet Yellen said May 7 that strength in the economy made measured reductions in asset purchases appropriate, even as stimulus is still needed. Bullion slumped 28 percent last year, the most since 1981, on concern the central bank would slow the pace of bond buying.

Gold futures for June delivery fell less than 0.1 percent to settle at $1,287.60 an ounce at 1:39 p.m. on the Comex, extending the week��s decline to 1.2 percent.

Prices are up 7.1 percent this year, partly because of escalating turmoil in Ukraine. The government in Kiev and its U.S. and European allies say President Vladimir Putin is fomenting unrest in eastern Ukraine, where pro-Russian separatists in the Donetsk and Luhansk regions are preparing to stage autonomy referendums May 11.

Source : Bloomberg

WTI Heads for Weekly Gain as Crude Stockpiles Drop; Brent Rises

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West Texas Intermediate headed for its first weekly advance in three as crude supplies shrank for the first time in more than a month in the U.S., the world��s biggest oil consumer. Brent rose as the European Union considered expanding sanctions on Russia.

Futures increased as much as 0.9 percent in New York. Crude stockpiles fell by 1.78 million barrels last week as inventories at Cushing, Oklahoma, the delivery point for WTI, slid to the lowest level since December 2008, data from the Energy Information Administration show. The European Union is ready to expand sanctions to some Russian companies, two officials said.

WTI for June delivery climbed as much as 92 cents to $101.18 a barrel in electronic trading on the New York Mercantile Exchange and was at $100.71 at 1:10 p.m. London time. The contract decreased 51 cents to $100.26 yesterday. Prices have gained 0.9 percent after two weekly losses.

Brent for June settlement rose as much as 98 cents, or 0.9 percent, to $109.02 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade was at a premium of $7.89 to WTI on ICE, compared with $8.83 on May 2.

Copy Source: Bloomberg

Gold Cuts Weekly Drop as Ukraine Weighed With Stimulus Outlook

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Gold rose in New York, narrowing a weekly drop, as investors weighed the Ukraine standoff with the outlook for monetary stimulus.

Gold slid 28 percent last year on expectations that the Federal Reserve would pare its bond-buying program. Fed Chair Janet Yellen said this week that strength in the economy made measured reductions in asset purchases appropriate, even as stimulus is still needed. The dollar rebounded from the lowest level since 2011 against the euro after European Central Bank President Mario Draghi yesterday said the bank may ease in June.

Gold for June delivery gained 0.5 percent to $1,293.60 an ounce by 7:40 a.m. on the Comex in New York. It��s down 0.7 percent this week after reaching $1,284.80 yesterday, the lowest since May 2. Futures volume was 37 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg showed. Bullion for immediate delivery rose 0.4 percent to $1,293.88 in London, according to Bloomberg generic pricing.

Copy Source: Bloomberg

Gold Heads for Second Weekly Drop on Ukraine to Stimulus Outlook

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Gold held above this week��s low, heading for a second weekly drop in London, as investors weighed the Ukraine standoff with the outlook for monetary stimulus.

Gold slid 28 percent last year on expectations that the Federal Reserve would pare its bond-buying program. Fed Chair Janet Yellen said this week that strength in the economy made measured reductions in asset purchases appropriate, even as stimulus is still needed. The dollar rebounded from the lowest level since 2011 against the euro after European Central Bank President Mario Draghi yesterday said the bank may ease in June.

Bullion for immediate delivery added 0.1 percent to $1,291.06 an ounce by 9:31 a.m. in London, according to Bloomberg generic pricing. It��s down 0.7 percent this week after reaching $1,285.22 yesterday, the lowest since May 2. Gold for June delivery rose 0.3 percent to $1,291 on the Comex in New York. Futures trading volume was 51 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg showed.

Copy Source: Bloomberg

Gold falls to 1-week low on euro despite rising Ukraine tensions

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Gold fell to its lowest in a week on Monday as the euro hovered near a one-month low on fears of policy action from the European Central Bank, shrugging off safe-haven demand from escalating violence in Ukraine.

Spot gold eased 0.5 percent to $1,282.50 an ounce by 0028 GMT, after dropping for two straight weeks. It fell to a one-week low of $1,279.60 earlier in the session.

The euro has lost more than 1 percent since Thursday when Mario Draghi said the bank was ready to take action next month should updated inflation forecasts merit it. A stronger dollar in turn makes bullion more expensive for holders of other currencies.

Investors seemed to ignore weekend developments in Ukraine, where pro-Moscow rebels declared a resounding victory in a referendum on self-rule for eastern Ukraine, with some saying that meant independence and others eventual union with Russia as fighting flared in a conflict increasingly out of control.

Hedge funds and money managers raised their bullish bets in gold futures and options for the second time in two weeks, as rising geopolitical tensions in Ukraine increased bullion's safe-haven appeal, according to data from the Commodity Futures Trading Commission on Friday.

Source : Reuters