Gold Holds Above $1,200 as U.S. Retail Sales Cloud Rates Outlook

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Gold held near a five-week high amid speculation that the Federal Reserve will push back a decision to raise interest rates after data showed U.S. retail sales were little changed last month.

Bullion for immediate delivery traded at $1,214.46 an ounce at 9:08 a.m. in Singapore from $1,215.75 on Wednesday, when the metal surged to $1,218.99, the highest since April 7, according to Bloomberg generic pricing. Gold in Shanghai jumped.

Gold has risen in May as the dollar fell on speculation the Fed isn’t getting any closer to raising borrowing costs for the first time since 2006. Retail sales barely budged in April, missing projections for a small gain. A liftoff in rates seems most probable in the late summer, according to David Altig, research head at the Fed Reserve Bank of Atlanta, who said it would be better for the bank to err on the side of waiting too long to raise rather than to tighten too soon.

Source : Bloomberg

old Rises to Five-Week High With Silver as Retail Sales Sputter

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Gold and silver futures jumped to five-week highs as stalling U.S. retail sales revived speculation that a sputtering economy will spur the Federal Reserve to delay raising interest rates.

Gold futures for June delivery rose 2.2 percent to settle at $1,218.20 an ounce at 2:02 p.m. on the Comex in New York. Earlier, the price reached $1,218.50, the highest for a most-active contract since April 6. The dollar dropped to a 15-week low against a basket of 10 currencies.

The metal climbed this week as rising energy costs stoked inflation concerns. Crude-oil futures in New York have jumped 44 percent from a six-year low in March. Gold has traditionally been used as a hedge against accelerating consumer prices.

Source: Bloomberg

China Stock-Index Futures Are Little Changed After Loan Data

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Chinese stock-index futures were little changed as investors weighed the prospect of more policy easing after monetary data missed economists’ estimates.

CSI 300 Index futures for May increased 0.1 percent to 4,680.60 at 9:18 a.m. in Shanghai. Property developers may be active after China’s new home sales jumped 16 percent last month. Tencent Holdings Ltd. may advance in Hong Kong after reporting a record profit in the first quarter.

The CSI 300 Index slid 0.6 percent. Hong Kong’s Hang Seng China Enterprises Index fell 0.8 percent, while the Hang Seng Index lost 0.6 percent. The ChiNext index of smaller companies declined 1.8 percent from a record on Tuesday. The Bloomberg China-US Equity Index increased 0.2 percent on Wednesday.

Source : Bloomberg

China Stocks Fluctuate as Traders Weigh Policy Easing Prospects

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Chinese stocks swung between gains and losses as investors weighed the prospect of more policy easing after monetary data missed economists’ estimates. Technology and telecom companies gained, while property developers slumped.

ZTE Corp. led an advance for phone companies, rallying 5.2 percent. IFlytek Co. headed for a record high. Tencent Holdings Ltd. advanced 2.6 percent in Hong Kong after reporting a record profit. Poly Real Estate Group Co. slumped 1.9 percent.

The Shanghai Composite Index added 0.2 percent to 4,383.56 at 9:35 a.m. The gauge fell Wednesday after data showed fixed-asset investment slowed to the weakest pace in more than 14 years and industrial output trailed estimates. After the market close, the central bank released data showing new loans plunged, while aggregate financing and M2 money supply missed forecasts.

Source : Bloomberg

Asian Stocks Fall as Japan Drops on Yen After U.S. Retail Sales

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Asian stocks declined after weaker-than-forecast U.S. retail sales fueled concern about growth in the world’s largest economy, strengthening the yen and sending Japanese shares lower.

The MSCI Asia Pacific Index fell 0.1 percent to 152.45  as of 9:06 a.m. in Tokyo. Sales at U.S. retailers were little changed in April compared with expectations for a 0.2 percent gain in a Bloomberg survey of economists. The Standard & Poor’s 500 Index slid less than 0.1 percent Wednesday for a third day of losses.

The yen gained 0.6 percent against the dollar Wednesday after the sales report. JPMorgan Chase & Co. lowered its forecast for second-quarter U.S. economic growth to 2 percent from 2.5 percent.

Japan’s Topix index slipped 0.2 percent. South Korea’s Kospi index lost 0.1 percent. Australia’s S&P/ASX 200 Index slid 0.6 percent. Markets in China and Hong Kong have yet to open.

Source : Bloomberg