Gold eases on fall in ETF holdings, stimulus fears
Spot gold was down USD 1 at USD 1,234.89 an ounce by 0025 GMT, after gaining 1 percent on Monday as the dollar eased from three-year highs.
July 09, 2013 / 11:09 IST
Gold slipped a touch on Tuesday, pressured by a sharp fall in holdings in bullion-backed exchange traded funds and persistent fears over the end of easy central bank money.
Also Read: Rupee fall, high crude prices double whammy for mkt: ExpertFundamentalsSpot gold was down USD 1 at USD 1,234.89 an ounce by 0025 GMT, after gaining 1 percent on Monday as the dollar eased from three-year highs.Comex gold was down slightly at USD 1,234.50.Bullion has fallen about 10 percent since Federal Reserve Chairman Ben Bernanke last month said the economy was recovering strongly enough for the US central bank's USD 85 billion monthly bond-buying stimulus to be reduced as soon as later this year.Global stock indexes climbed on Monday as the upcoming US earnings season added to investor optimism after last week's robust US jobs data.Hedge fund manager John Paulson's gold fund has lost 65 percent of its worth so far this year after the portfolio declined 23 percent last month, two people familiar with the fund said on Monday.SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.56 percent to 946.96 tonne on Monday - their lowest since February 2009.Hedge funds and money managers raised their bullish bets in gold and silver futures and options in the week to July 2, a report by the Commodity Futures Trading Commission showed on Monday.Russian precious metals and gems repository Gokhran hopes to start buying gold again on the domestic market in 2014 after a two-year break, a source told Reuters.Market NewsThe dollar paused in its rally as investors bought beaten-down currencies such as the Australian dollar on Tuesday, though its broad uptrend is seen intact as the market tries to position for when the Fed will start to slow its stimulus.Japan's benchmark Nikkei average opened up 1.32 percent on Tuesday. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
