Gold Set for Largest Monthly Fall in Two Years as Dollar Gains

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Gold held declines, heading for its biggest monthly drop in two years as the U.S. economy expanded at a faster pace in the second quarter, bolstering expectations of a rate rise this year and boosting the dollar.

Bullion for immediate delivery was little changed at $1,089.29 an ounce at 8:36 a.m. in Singapore, according to Bloomberg generic pricing. It’s down 7.1 percent this month after last week falling to $1,077.40, the lowest since February 2010.

The dollar maintained gains, set for its best month since January as speculation firmed that the Federal Reserve will boost interest rates at its next meeting. Increasing rates curbs the appeal of gold as the metal doesn’t pay interest or give returns like competing assets such as equities and bonds.

Gold for December delivery, the contract with the most open interest, was little changed at $1,088.40 an ounce on the Comex in New York. Silver for immediate delivery fell 0.1 percent to $14.7372 an ounce. Platinum fell 0.1 percent to $989.03 an ounce. Palladium was little changed at $622.42 an ounce.

Source: Bloomberg

Dollar Rises to Four-Month High as U.S. Economy Gains Strength

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The dollar surged to a four-month high as a report showed the U.S. economy grew in the first half of the year, a day after the Federal Reserve took a step closer to raising interest rates.

The U.S. currency strengthened against all of its 16 major peers as data showed the world’s biggest economy expanded at a faster pace in the second quarter and eked out a gain at the start of the year.

The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 of its major peers, gained 0.3 percent to 1,211.54 at 3:29 p.m. in New York. It reached the highest since March, when it rose to a record in data going back to 2004.

The U.S. currency gained for a third straight day against both the euro and the yen, rising 0.5 percent to $1.0929 against the euro and 0.2 percent to 124.15 yen.

Source: Bloomberg

Asian Stocks Gain, Paring July Loss, Ahead of China Factory Data

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Asian stocks rose as investors weighed earnings reports in Japan ahead of manufacturing data that may provide a clue to the strength of China’s economic growth.

The MSCI Asia Pacific Index gained 0.2 percent to 141.08 as of 9:07 a.m. in Tokyo. The gauge is on course to decline 0.9 percent this week and 3.5 percent in July, which would be its worst monthly drop this year. China discloses July factory output on Saturday, after a private report showed manufacturing unexpectedly fell to a 15-month low in the month. Today is the busiest day of Japan’s earnings season, with more than 310 Topix companies scheduled to post results.

Japan’s Topix index gained 0.2 percent. Sony Corp. profit tripled in the first quarter as a renewed focus on sensor chips and video games begins to pay off for an electronics maker that posted losses in six of the past seven years. The Nikkei 225 Stock Average slid 0.1 percent, dragged down by its heaviest-weighted companies, Fast Retailing Co. and Fanuc Corp.

Australia’s S&P/ASX 200 Index added 0.1 percent. South Korea’s Kospi index rose 0.4 percent and New Zealand’s NZX 50 Index added 0.1 percent.

Futures on Hong Kong’s Hang Seng Index and contracts on the Hang Seng China Enterprises Index both rose 0.1 percent. FTSE China A50 Index futures added 0.8 percent in Singapore.

Source : Bloomberg

Japanese Stocks Rise as Investors Await Busiest Day of Earnings

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Japanese stocks rose, with the Topix index set to cap a monthly increase, as investors await company results on the busiest day in the earnings season. Shippers and refineries led gains.

The Topix index climbed 0.2 percent to 1,650.72 as of 9:02 a.m. in Tokyo, headed for a weekly loss of 0.3 percent and a gain of 1.2 percent in July. The Nikkei 225 Stock Average lost 0.2 percent to 20,488.75. More than 300 companies in the Topix will report quarterly results Friday, including the nation’s three largest banks.

Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. report after the close of markets. Of the 598 firms that have reported so far this season, 59 percent exceeded profit expectations, an improvement from the 48 percent that beat forecasts in the previous quarter, according to data compiled by Bloomberg. Sales were also stronger, with 60 percent coming in above estimates, up from 55 percent last quarter.

Japanese core consumer prices rose 0.1 percent in June from a year earlier, beating estimates for no change, a government report showed Friday. Separate data showed the jobless rate ticked up to 3.4 percent. Economists estimated the rate would remain at 3.3 percent.

Futures on the Standard & Poor’s 500 Index slid 0.1 percent after the underlying measure finished little changed on Thursday. U.S. gross domestic product rose at a 2.3 percent annualized rate from April through June after a revised 0.6 percent advance the prior three months that wiped out a previously reported drop, Commerce Department data showed Thursday in Washington.

Source: Bloomberg

U.S. Stocks Little Changed as Mondelez Offsets Facebook, P&G

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U.S. stocks were little changed as better-than-estimated earnings from Mondelez International Inc. helped offset results that disappointed from Facebook Inc. and Procter & Gamble Co.

The Standard & Poor’s 500 Index increased less than 0.1 percent to 2,108.75 at 4 p.m. in New York, after falling as much as 0.6 percent. The gauge rebounded above its average prices during the past 50 and 100 days.

A report today showed gross domestic product rose at a 2.3 percent annualized rate, and a revised 0.6 percent advance in the first quarter wiped out a previously reported contraction. Consumer spending grew more than projected. Separate data showed applications for unemployment benefits rose last week after reaching a four-decade low, consistent with a stronger labor market.

The Federal Reserve yesterday appeared to move a step closer to raising interest rates after policy makers expressed satisfaction with an improvement in labor markets, keeping alive speculation borrowing costs may rise in September without being definitive about the timing.

Source: Bloomberg