Dollar Touches One-Week High Versus Yen Before U.S. Retail Sales

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The dollar rose to the highest in a week versus the yen before a report today forecast to show U.S. retail sales increased for a third month.

The greenback traded near the strongest in a month against the euro as improving U.S. economic data bolstered the case for the Federal Reserve to continue tapering stimulus, moving closer to the first interest-rate increase since 2006. A gauge of U.S. dollar strength headed for its highest close this month. Australia��s dollar was near a four-week high before the release of the annual budget today and Chinese data on retail sales and industrial production.

The dollar bought 102.19 yen as of 9:47 a.m. in Tokyo from 102.13 yesterday, after earlier touching 102.23, the most since May 5. It was little changed at $1.3765 per euro, after reaching $1.3745 on May 9, the strongest since April 8. The single currency traded at 140.67 yen from 140.50 in New York.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, was at 1,008.15, after closing at the highest this month at 1,008.35 yesterday.

U.S. retail sales probably increased 0.4 percent in April, according to the median estimate of economists polled by Bloomberg News. They grew 1.2 percent in March, which was the most since August 2012.

Source : Bloomberg

Gold steady on Ukraine but fund outflows threaten gains

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Gold held on to overnight gains on Tuesday as simmering tensions in Ukraine stoked its safe-haven appeal, but the metal was at risk of falling back on weak physical demand and bullion-fund outflows.

Spot gold was little changed at $1,295.40 an ounce by 0013 GMT, after gaining 0.5 percent on Monday. The metal traded in a wide range in the previous session, climbing at one point to $1,303.80 before giving back some gains.

Pro-Moscow rebel leaders in eastern Ukraine called for their region to become part of Russia, a day after staging a referendum on self-rule, although Moscow stopped short of endorsing their bid for annexation.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 2.39 tonnes to 780.46 tonnes on Monday - the first outflow since May 2.

Source : Bloomberg

Gold Advances as Ukraine Tension Spurs Demand for Haven Assets

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Gold futures advanced for the first time in five sessions as the crisis over Ukraine spurred demand for the metal as a haven.

Bullion has climbed 7.8 percent this year as the conflict between Russia and Ukraine increased the appeal of the precious metal as a store of value. The demand helped to revive gold prices that tumbled 28 percent in 2013, ending its 12-year rally, partly on the outlook for less stimulus from the Federal Reserve.

Gold futures for June delivery rose 0.6 percent to settle at $1,295.80 an ounce at 1:49 p.m. on the Comex in New York, the biggest gain since May 2. The metal dropped 1.2 percent last week.

Copy Source: Bloomberg