Gold Rise to 11 Week High as Greek Election Spurs Euro Turmoil

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Gold futures rose to an 11-week high on speculation that Greece will abandon the euro, boosting the precious metal™s appeal as a haven asset. Silver climbed to a one-month high.

Gold futures for February delivery climbed 0.1 percent to settle at $1,234.40 an ounce at 1:45 p.m. on the Comex in New York. Earlier, the metal reached $1,244.50, the highest for a most-active contract since Oct. 23.

Silver futures for March delivery gained 3.6 percent to $17.156 an ounce. The price reached $17.215, the highest since Dec. 12. Aggregate trading was 30 percent more than the 100-day average for this time, while gold climbed 22 percent, according to data compiled by Bloomberg.

Through yesterday, silver slid 2.9 percent since the end of the third quarter, while gold advanced 1.7 percent.

Platinum futures for April delivery added 0.5 percent to $1,247.80 on the New York Mercantile exchange, a fourth straight gain and the longest rally since Oct. 9. Palladium also climbed for the fourth consecutive session, increasing 0.2 percent to $815.70 an ounce.

The gold-platinum ratio rose as much as 0.7 percent to 1.0002, the highest since Dec. 19, according to Bloomberg generic prices.

Source: Bloomberg

Euro Declines to Nine-Year Low on Stimulus Outlook; Ruble Drops

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The euro fell to a nine-year low as officials fueled speculation that the European Central Bank will begin buying government bonds as early as next week to stave off deflation.

A gauge of the dollar gained to almost the highest in a decade on bets the Federal Reserve will raise interest rates this year. Richard Clarida of Pacific Investment Management Co. said he sees the euro falling to parity. The shared currency slid after a Greek official said the nation may exit the currency union as the opposition party holds a slim lead heading into elections. Sweden™s krona climbed versus the euro as consumer prices fell less than analysts estimated. Russia™s ruble dropped with oil.

The euro dropped 0.5 percent to $1.1771 at 1:26 p.m. New York time and touched $1.1753, the weakest level since 2005. Europe™s common currency fell 1 percent to 138.69 yen. The yen rose 0.5 percent to 117.82 per dollar after reaching 117.74, the strongest since Dec. 17.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, was little changed at 1,143.41. It closed at 1,147.54 on Jan. 8, the highest in data going back to 2004.

Source: Bloomberg

U.S. Stocks End Lower After Fluctuating Amid Drop in Oil, Copper

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Volatility surged in the U.S. equity market as the Dow Jones Industrial Average erased both a 282-point rally and a 143-point decline, then slipped again in the final minutes to close lower.

U.S. stocks swung between gains and losses as oil prices fluctuated near the lowest level in five years, while copper plunged. The Standard & Poor™s 500 Index dropped 0.3 percent to 2,023 at 4 p.m. in New York, after an earlier gain of 1.4 percent and then a decline of 1 percent. The index had fallen 1.6 percent over two days.

The Dow average lost 26.78 points, or 0.2 percent, to 17,614.06.

The S&P 500 moved 48 points from peak to trough today, the biggest intraday swing since Oct. 15, when the benchmark gauge erased nearly all of a 3 percent decline.

The index declined 0.8 percent yesterday as the continuing selloff in crude pulled down energy shares. It has dropped 3.3 percent since a record in December as oil prices fell to the lowest since April 2009.

Oil rose 0.8 percent in electronic trading as of 3:50 p.m. in New York, after falling 0.4 percent during regular trading.

Source: Bloomberg

U.S. Stocks Rebound From Two-Day Slide; Euro, Copper Retreat

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U.S. equities advanced after two days of declines, as Apple Inc. led a technology rally and Alcoa Inc.™s results boosted optimism in the economy. Retailers drove stocks higher in Europe, while oil fluctuated after dropping below $45 a barrel in New York.

The Standard & Poor™s 500 Index gained 0.7 percent at 12:23 p.m. in New York, trimming gains as homebuilders slumped. Apple and Amazon.com Inc. advanced more than 2 percent following ratings upgrades. West Texas Intermediate oil slipped 0.8 percent to $45.70 a barrel, paring a slide of more than 3 percent. Copper declined 3 percent, as the Bloomberg Commodity Index fell to the lowest since 2002. The Stoxx Europe 600 Index rose 1.4 percent, while the euro slumped to a nine-year low on stimulus bets.

The S&P 500 rebounded from a two-day drop of 1.6 percent that left it 3 percent below its Dec. 29 record. Alcoa, the largest U.S. aluminum producer, reported profit and sales that beat analysts™ estimates. Apple rallied after Credit Suisse AG raised its rating on the company. Declining fuel prices have curbed inflation expectations, cutting the chance of an early Federal Reserve interest-rate increase while boosting speculation the European Central Bank will expand stimulus.

Source: Bloomberg

Europe Stocks Gain as Retailers Rise, U.K. Prices Miss Forecasts

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European stocks advanced for a second day, as retailers climbed and data showed U.K. inflation fell to the lowest level in 15 years.

The Stoxx Europe 600 Index added 1.4 percent to 344.77 at the close of trading. The equity gauge extended gains after a report showed Britain™s consumer-price growth slowed to 0.5 percent in December, below estimates, amid a plunge in oil prices. The U.K.™s FTSE 100 Index climbed 0.6 percent. With crude below $45 a barrel, speculation is rising that the European Central Bank will need to step up stimulus measures to avert deflation.

Retailers rose the most of the 19 industry groups in the Stoxx 600. William Morrison Supermarkets Plc jumped 4.5 percent after saying it will start a search for a new chief executive officer to replace Dalton Philips, who will step down at the end of the year. It also reported sales at stores open at least a year fell 3.1 percent, excluding fuel, in the six weeks ended Jan. 4. That beat the median estimate of analysts for a 4 percent drop.

Tesco Plc advanced 3.6 percent, J Sainsbury Plc rose 3.6 percent and Ocado Group Plc increased 2.5 percent.

Metro AG gained 4.5 percent. The operator of Germany™s Kaufhof department stores reported an increase in first-quarter adjusted revenue as all divisions had better same-store sales in December.

Source: Bloomberg