Gold Posts Second Weekly Gain as Iraq Violence Sparks Demand

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Gold futures capped a second straight weekly gain as escalating violence in Iraq boosted demand for the precious metal as a haven. Silver posted the longest rally in almost four months.

Crude oil jumped to the highest in more than eight months on concern that a civil war looms in Iraq, OPEC��s second-biggest producer. Gold gained 6 percent this year, partly because of escalating tensions between Ukraine and Russia.

Gold futures for August delivery gained less than 0.1 percent to settle at $1,274.10 an ounce at 1:41 p.m. on the Comex in New York, capping a fifth straight gain and the longest rally in three months. The price today reached $1,277.60, and rose 1.7 percent this week.

Trading was 45 percent below the average for the past 100 days for this time, according to data compiled by Bloomberg, while the 60-day historical volatility fell to the lowest since April 2013.
Silver futures for July delivery rose 0.6 percent to $19.655 an ounce. The price climbed for the fifth straight session, the longest rally since Feb. 18.

Oil futures on the New York Mercantile Exchange reached $107.68 a barrel, the highest since Sept. 19. Saudi Arabia is the biggest producer in the Organization of Petroleum Exporting Countries.

On the Nymex, platinum futures for July delivery fell 0.4 percent to $1,435 an ounce.
Yesterday, the price tumbled 2.7 percent as mining companies and union officials in South Africa agreed on a wage pact to present to workers in a bid to end a 20-week strike that has crippled output. The nation is the world��s largest platinum producer and second-biggest for palladium.

   
Source : Bloomberg

Bank of Japan holds fire on stimulus

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The Bank of Japan on Friday held off expanding its stimulus programme and said the world's number three economy was recovering, despite fears a sales tax rise will dent growth.

Policymakers unanimously agreed to hold off any further measures after a two-day meeting. Investors are now awaiting a statement by BoJ governor Haruhiko Kuroda at about 3:30 pm local time (0630 GMT).

The widely expected move comes as the US Federal Reserve winds down its own stimulus and just over a week after the European Central Bank launched unprecedented easing measures to counter the threat of deflation in the eurozone.

Japanese central bankers have held steady since launching a huge monetary easing blitz in April last year as they gauge the impact of a recent sales tax hike that has threatened to derail the country's nascent recovery.

On Friday, the BoJ acknowledged that consumer demand and industrial production had taken a hit after the April 1 tax hike, prior to which millions of shoppers went on a buying spree.

"Japan's economy is expected to continue a moderate recovery as a trend, while it will be affected by the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike," the bank said in a statement.

Policymakers noted that overseas economies, particularly among major industrialised nations, were also recovering "albeit with a lacklustre performance still seen in part".

The BoJ's target of achieving 2.0 percent inflation by next year was also on course, it said.

Source : AFP

Lawmaker Choi Nominated to Be South Korea’s Finance Minister

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Lawmaker Choi Kyung Hwan was nominated to become South Korea��s finance minister as President Park Geun Hye strives to regain voters�� support and sustain economic growth.

Choi, 59, will succeed Hyun Oh Seok as finance minister and deputy prime minister for the economy after he��s vetted by parliament. Choi was Minister of Knowledge Economy under former President Lee Myung Bak between 2009 and 2011.

Park is striving to overhaul the government after the Sewol ferry disaster sent her approval ratings tumbling and threatened to stall her agenda. As finance minister, Choi would face challenges from a won trading near six-year highs against the dollar, weakness in domestic demand and record household debt.

Choi is a graduate of Yonsei University and received a Ph.D. in international economics from the University of Wisconsin. He��s a former chief economist for the European Bank for Reconstruction and Development, according to a biography supplied by the finance ministry.

Park has pledged to increase the nation��s per capita income to near $40,000, raise the employment rate to 70 percent and boost the potential economic growth rate to 4 percent.

Source : Bloomberg

Gold Poised for First Back-to-Back Weekly Increase Since April

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Gold climbed to a two-week high, set for the first back-to-back weekly advance since April, as concerns that a U.S. recovery may be stalling and violence in Iraq will escalate boosted demand for a haven.

Gold for immediate delivery rose as much as 0.2 percent to $1,275.65 an ounce, the highest level since May 27, before trading at $1,273.34 by 10:25 a.m. in Singapore, according to Bloomberg generic pricing. The metal added 1.6 percent this week after rising 0.3 percent a week earlier.

Bullion has increased 6 percent this year in part as tension between Ukraine and Russia fueled demand for a haven. Gold climbed 1 percent yesterday, the most since May 2, as unrest in Iraq drove oil to an eight-month high and sent stocks tumbling. U.S. data yesterday showed retail sales climbed less than forecast while jobless claims topped estimates.

Gold for August delivery traded at $1,273.50 an ounce on the Comex in New York from $1,274 yesterday. (izr)

Source : Bloomberg