Gold holds near 4-month low as investors await U.S. data

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Gold was treading water on Wednesday, hovering near a four-month low hit in the previous session, as investors await U.S. economic data for cues amid increasing optimism about growth and weak bullion demand in Asia.
   
Spot gold was flat at $1,244.50 an ounce by 0032 GMT. The metal hit a four-month low of $1,240.61 on Tuesday, before closing flat and snapping a five-day losing streak.

Asian physical demand, which usually tends to provide a floor to prices during sharp losses, has been weak as many expect gold to go lower. Asia is home to major gold consumers, China and India.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.8 tonnes to 787.08 tonnes on Tuesday.

Markets are eyeing U.S. private hiring data later on Wednesday and nonfarm payrolls on Friday to gauge economic strength. Gold is often seen as an investment-hedge at times of economic uncertainty.

Centerra Gold's development plans for its Kumtor gold mine in Kyrgyzstan could damage the nearby Davydov glacier, the Central Asian state's environment protection agency said, adding to uncertainty about the mine's future.

Among other precious metals, platinum steadied after a three-day fall as union workers in top producer South Africa consider a government proposal to resolve a 5-month platinum strike.

Source : Reuters

Dollar Reaches One-Month High Versus Yen Before Jobs, Beige Book

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The dollar reached a one-month high versus the yen before the release of labor reports this week that may encourage the Federal Reserve to pare stimulus.

The euro held a gain from yesterday as traders speculated that its recent weakness has factored in prospects European Central Bank President Mario Draghi will announce easing measures at a policy meeting tomorrow. The New Zealand dollar remained lower following a two-day drop as whole milk powder prices fell for an eighth straight auction.

The U.S. currency was little changed at 102.54 yen as of 9:10 a.m. in Tokyo from yesterday after reaching 102.59, the strongest level since May 2. It traded at $1.3620 per euro, following a 0.2 percent decline to $1.3628 yesterday. The euro bought 139.65 yen from 139.69.

Companies in the U.S. probably added 210,000 positions in May, following the previous month��s 220,000 increase, economists surveyed by Bloomberg News forecast before data from the ADP Research Institute today. A June 6 Labor Department report may show a gain of 215,000 jobs, a separate poll showed.

The dollar yesterday pared losses against the euro and advanced versus the yen after U.S. factory orders increased in April more than economists forecast.

Ten-year Treasury yields yesterday climbed to 2.60 percent, the highest since May 14, after rising 12 basis points over two days. Bonds of similar maturity in Japan yield 0.615 percent.

Source : Bloomberg

WTI Crude Gains After Report Shows Rising Factory Orders

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West Texas Intermediate advanced on speculation that inventories declined at Cushing, Oklahoma, and on growth in U.S. factory orders. WTI��s trading range was the tightest in almost eight years.

The U.S. benchmark climbed from a two-week low. Supplies at the delivery point for WTI futures dropped for a 17th time in 18 weeks in the seven days ended May 30, according to five analysts surveyed by Bloomberg before a government report tomorrow. U.S. April factory orders gained 0.7 percent, the Census Bureau reported. WTI narrowed the discount to Brent, which fell on concern a weaker European economy will reduce demand and as Libya production gained.

WTI for July delivery gained 19 cents to end at $102.66 a barrel on the New York Mercantile Exchange on volume that was 31 percent below the 100-day average for the time of day. The price ranged from $102.23 to $102.81 at 3:23 p.m. The 58-cent difference was the smallest since July 3, 2006.

Brent for July settlement declined 1 cent to $108.82 a barrel on the London-based ICE Futures Europe exchange. Trading was 7.9 percent above the 100-day average. WTI traded at a $6.16 discount to Brent, the narrowest in a week. The price ranged from $108.32 to $108.98.

Source : Bloomberg

Gold futures barely rise for first gain in seven sessions

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SAN FRANCISCO �� Gold futures settled with a modest gain on Tuesday, their first in seven sessions, with traders looking ahead to the week��s economic events, including a European Central Bank meeting and the monthly U.S. nonfarm payrolls report.

Gold for August tacked on 50 cents to settle at $1,244.50 an ounce on the Comex division of the New York Mercantile Exchange. Prices had tallied a loss of roughly 4%, or just over $50 an ounce, over the past six trading sessions.

July silver, meanwhile, gained over 2 cents, or 0.1%, on Tuesday to close at $18.76 an ounce, extending its gain from a day earlier, which followed a five-session decline.

Shares of gold and silver miners headed broadly lower for a second straight session in afternoon dealings. The Philadelphia Gold and Silver Index fell 0.6%. Shares of the SPDR Gold Trust  turned a bit higher, trading up 0.1%, while the iShares Silver Trust tacked on 0.1%.

Source : MarketWatch