Gold trades near 4-month low as higher equities curb demand

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Gold steadied after a five-day losing streak on Tuesday but was still trading near its lowest
level in four months as stronger equities dented the metal's investment-hedge appeal.
   
Spot gold was flat near $1,244.46 an ounce by 0018 GMT. The five-day decline before Tuesday is the metal's longest losing streak in nearly seven months.

A global gauge of equities edged up to a more than six-year high on Monday after strong Chinese and U.S. factory data, while soft numbers out of Europe heightened expectations for action from the European Central Bank, pressuring the euro.

Gold is often seen as an alternative investment to riskier assets such as stocks.

Investors were eyeing physical demand in top consumer China, which returns from a holiday, to gauge bullion sales during the Dragon Boat festival.

In news from gold producers, Centerra Gold Inc  said it will begin to shut down operations at its Kumtor gold mine in Kyrgyzstan unless its new mine plan is approved by the government and permits are issued by June 13.

Ecuador will invest gold held as monetary reserves in financial instruments in an operation with Goldman Sachs  meant to boost the available cash without affecting the value of reserves, the central bank said.

Platinum and palladium were edged higher on Tuesday as wage strikes in major producer South Africa dragged on for a fifth month.

A South African labour court threw out an urgent application on Monday by the AMCU union to stop platinum firms communicating directly with miners, as both sides deliberated over government proposals to end the strike.

Source : Reuters

WTI Rises From One-Week Low on China Factory Data; Brent Slips

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West Texas Intermediate crude rebounded from its lowest close in more than a week after manufacturing expanded at the fastest pace this year in China, the world��s second-biggest oil consumer. Brent slipped as Libya said one of its ports would reopen.

Futures gained as much as 0.6 percent in New York. China��s Purchasing Managers�� Index climbed to 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing reported yesterday. Libya��s Hariga port is set to reopen after authorities approved salary payments to Petroleum Facilities Guard members who are preventing crude loadings, according to National Oil Corp.

WTI for July delivery increased as much as 64 cents to $103.35 a barrel in electronic trading on the New York Mercantile Exchange and was at $102.82 at 12:35 p.m. London time. It closed at $102.71 on May 30, the lowest settlement since May 20. The volume of all futures traded was about 34 percent below the 100-day average for the time of day. Prices are up 4.5 percent this year.

Brent for July settlement erased earlier gains of 0.4 percent to trade 19 cents lower at $109.22 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.41 to WTI, compared with $6.70 on May 30.

Copy Source: Bloomberg

Dollar Near Three-Month High Versus Euro on Diverging Outlooks

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The dollar was within 0.1 percent of the strongest in three months versus the euro as an increase in Treasury yields and jobs data tomorrow predicted to show an improving labor market boosted the U.S. currency.

Demand for the single currency was limited before a report today projected to show euro-area inflation slowed in May, strengthening the case for the European Central Bank to expand easing on June 5. Australia��s dollar held a drop from yesterday, its biggest in two weeks, as economists forecast the Reserve Bank will maintain record-low interest rates at a policy meeting today.

China, Australia��s largest trading partner, will release reports on services and manufacturing.

The dollar was little changed at $1.3596 per euro as of 9:13 a.m. in Tokyo after appreciating to $1.3586 on May 29, the strongest level since Feb. 13. The U.S. currency traded at 102.42 yen following a 0.6 percent gain yesterday. The euro was at 139.27 yen from 139.21.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, was little changed at 1,014.97 after yesterday reaching the highest since April 7.

Source : Bloomberg

WTI Oil Swings as Near-Record U.S. Crude Supplies Seen Dropping

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West Texas Intermediate swung between gains and losses amid speculation that crude supplies near a record fell in the U.S., the world��s biggest oil user.

Futures were little changed in New York after slipping a second day yesterday. Crude inventories probably shrank by 1 million barrels last week, according to a Bloomberg News survey before an Energy Information Administration report tomorrow. Libya��s Hariga oil export port may re-open within two days, a spokesman for National Oil Corp. said yesterday. The nation has become OPEC��s smallest producer as unrest disrupted exports.

WTI for July delivery was at $102.59 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 9:06 a.m. Sydney time. The contract slid 0.2 percent to $102.47 yesterday, the lowest close since May 20. The volume of all futures traded was about 61 percent below the 100-day average.

Brent for July settlement declined 58 cents, or 0.5 percent, to $108.83 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $6.36 to WTI.

U.S. stockpiles probably fell to 391.9 million barrels in the seven days ended May 30, according to the Bloomberg survey. Supplies were at 399.4 million through April 25, the most since the EIA began publishing weekly data in 1982.

Source : Bloomberg

Gold Caps Longest Decline Since August on Global Equity Rally

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Gold futures fell, capping the longest slump since August, as a rally in global equities curbed demand for alternate investments.

The MSCI All-Country World Index of stocks rose to the highest since November 2007 as China��s manufacturing expanded at the fastest pace in five months. The Standard & Poor��s 500 Index extended a rally to a record. Increases in equities and the dollar curbed demand for gold, Barclays Plc said in a report.

The metal touched a 17-week low today, partly as tensions eased in Eastern Europe. A majority of Russia��s forces have withdrawn from the border with Ukraine, a U.S. Pentagon spokesman said on May 30. Hedge funds pared bets on a gold rally at the fastest pace this year.

Gold futures for August delivery fell 0.2 percent to settle at $1,244 an ounce at 1:43 p.m. on the Comex in New York. Earlier, the price touched $1,241.10, the lowest for a most-active contract since Feb. 3. The metal fell for a sixth straight session, the longest slump since Aug. 6.

Source : Bloomberg