Moneycontrol
May 09, 2017 07:57 AM IST | Source: Reuters

Gold near 7-week low as safe-haven demand fades after French election

Spot gold was up 0.1 percent at $1,227.08 per ounce as of 0054 GMT, after touching a seven-week low of 1,224.86 in the previous session.

Gold near 7-week low as safe-haven demand fades after French election

Gold inched up early on Tuesday as Asian stocks eased, but was sitting near a seven-week low hit in the previous session as Emmanuel Macron's victory in French elections dampened the safe-haven appeal of the metal.

FUNDAMENTALS

Spot gold was up 0.1 percent at $1,227.08 per ounce as of 0054 GMT, after touching a seven-week low of 1,224.86 in the previous session.

U.S. gold futures were steady at $1,227.10 an ounce.

Asian stock markets were subdued on Tuesday, taking their cue from a flat Wall Street, as investors searched for the next catalyst following France's presidential election.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent early on Tuesday.

Investor sentiment in the euro zone hit its highest level in almost a decade in May, improving more than expected thanks to a strong assessment of the current economic situation and expectations that political uncertainty will diminish.

The U.S. economy's weak performance at the start of the year should slow Federal Reserve plans for further rate increases, now broadly expected to resume at the central bank's June meeting, St. Louis Federal Reserve bank president James Bullard said on Monday.

Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.14 percent to 851.89 tonnes on Monday.

India's gold imports in April more than doubled from a year ago to 75 tonnes on strong demand during a festival that prompts purchases and as jewellers stocked up ahead of a new national sales tax, provisional data from consultancy GFMS showed.

The London Bullion Market Association will publish details of physical gold and silver holdings in London vaults from summer 2017, it said in a statement on Monday.

Africa's biggest gold miner AngloGold Ashanti reported a 16 percent drop in quarterly core profit on Monday hit by a weak showing at its South African operations.
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