Gold Investor Exit Shakes Off Boredom With Higher Volatility

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The rout that sent gold prices to a four-year low is also shaking boredom out of the market, with a rebound in volatility thats giving some investors more reason to sell.

The metals 30-day volatility is close to the highest since January, according to data compiled by Bloomberg. The measure in October touched the lowest since 2010, with investors ignoring gold in favor of equities for most of the year.

Gains for the U.S. labor market lured the bears back. The metal erased its 2014 advance just before the Federal Reserve said it would stop buying bonds. The declines accelerated as the dollar climbed to a five-year high against a basket of 10 currencies and tumbling energy costs signaled tame inflation. In the week ended Nov. 4, hedge funds cut net-bullish gold bets by the most this year, and short holdings rose for the first time in a month, the most-recent U.S. government data show.

Gold futures for delivery in December fell 0.3 percent to settle at $1,159.10 an ounce at 1:40 p.m. on the Comex in New York. Earlier, the price climbed as much as 0.6 percent. On Nov. 7, the metal touched $1,130.40, the lowest for a most-active contract since April 2010.

Source : Bloomberg

Dollar Climbs to One-Year High Versus Pound on Rate Bets

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The dollar climbed to its strongest in more than a year versus the pound after U.K. policy makers cut growth forecasts while the U.S. Federal Reserve prepares to raise interest rates.

The greenback rose against the euro as European Central Bank Governing Council member Jens Weidmann said inflation would stay low for an extended period of time. The yen advanced from its weakest level in seven years versus the dollar as Japanese officials downplayed speculation of an early election that may boost Prime Minister Shinzo Abes mandate for unprecedented stimulus. New Zealands dollar rallied.

The U.S. currency added 0.9 percent to $1.5782 per pound as of 3:15 p.m. in New York after touching $1.5776, the strongest since September 2013. The dollar rose 0.3 percent to $1.2432 per euro.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, gained 0.2 percent to 1,094.26. The yen strengthened 0.2 percent to 115.53 per dollar. The yen appreciated 0.6 percent to 143.63 per euro.

Source : Bloomberg

S&P 500, Dow Average Halt Winning Streaks; Small Caps Advance

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The Standard & Poors 500 Index halted a five-day rally, while small-cap shares rose to the highest level since July, as gains among phone and consumer stocks offset losses in utilities and growing concern over slowing growth in Europe.

The S&P 500 lost 0.1 percent to 2,038.21 at 4 p.m. in New York. The Dow Jones Industrial Average declined 2.89 points, or less than 0.1 percent, to 17,612.01. Both gauges closed at all-time highs yesterday.

The Nasdaq Composite Index gained 0.3 percent to the highest since March 2000, while the Russell 2000 Index of small companies added 0.6 percent to cap a six-day rally, its longest since June.

The S&P 500 had gained for five straight sessions, bringing its advance from a six-month low in October to 9.5 percent, as better-than-estimated corporate earnings and economic data boosted confidence the U.S. economy is weathering a global slowdown.

The broader index fell as much as 9.8 percent from a September record on increasing signs that European growth was slowing at the same time the Federal Reserve was ending its monthly bond purchases.

Source : Bloomberg

European Stocks Fall Amid Bank Slide, Escalating Ukraine Tension

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European stocks declined, as banks dragged the Stoxx Europe 600 Index lower, and NATO said Russia sent troops and heavy weapons into Ukraine.

Banks slipped as U.S., Swiss, and British regulators fined lenders including HSBC Holdings Plc, Royal Bank of Scotland Group Plc and UBS AG to settle a probe into foreign-exchange manipulation. Barclays Plc slid 2.2 percent after saying it is not ready to settle the investigation. Enel SpA led utility-related shares lower after third-quarter profit fell more than analysts predicted.

The Stoxx 600 retreated 1.1 percent to 335.09 at the close of trading. The measure had rebounded 9.3 percent from this years low on Oct. 16 through yesterday as the Bank of Japan unexpectedly boosted its stimulus and companies from Vodafone Group Plc to Carlsberg A/S reported better-than-estimated financial results.

Source : Bloomberg

U.S. Stocks Pare Losses as Energy Shares Erase Slide

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U.S. stocks pared declines as energy shares trimmed losses with the price of crude, offsetting declines among financial and utility shares.

The Standard & Poors 500 Index (SPX) lost 0.1 percent to 2,037.32 at 11:41 a.m. in New York, trimming losses of as much as 0.4 percent. The Dow Jones Industrial Average declined 26.94 points, or 0.2 percent, to 17,587.96. Both gauges closed at all-time highs yesterday. Trading in S&P 500 stocks was 21 percent below the 30-day average at this time of day.

The S&P 500 had gained for five straight sessions, bringing its advance from a six-month low in October to 9.5 percent, as better-than-estimated corporate earnings and economic data boosted confidence the U.S. economy is weathering a global slowdown.

Source : Bloomberg