SENSEX NIFTY
Apr 26, 2012, 10.29 AM IST | Source: Reuters

Gold ticks down after Fed, equities curb losses

Gold edged down on Thursday after the US Federal Reserve's meeting on interest rates offered few surprises.

Gold ticks down after Fed, equities curb losses

Gold edged down on Thursday after the US Federal Reserve's meeting on interest rates offered few surprises, but gains in equities and expectations the central bank could do more if necessary to lift the economy helped limit losses.

The Fed has previously engaged in two rounds of asset purchases totalling USD 2.3 trillion, known as quantitative easing, to drive down interest rates and stimulate the economy, while helping gold's safe-haven appeal.

Fundamentals

* Spot gold eased 92 cents to USD 1,643.06 an ounce by 0022 GMT after falling as low as USD 1,623.90 on Wednesday in a knee-jerk sell-off after the Fed disappointed investors who had hoped for another round of asset purchases.

* US gold for June added USD 1.50 to USD 1,643.80 an ounce.

* Fed Chairman Ben Bernanke on Wednesday said US monetary policy was "more or less in the right place" even though the central bank would not hesitate to launch another round of bond purchases if the economy were to weaken.

* Demand for long-lasting US manufactured goods tumbled by the most in three years in March and businesses cut back on spending plans, suggesting the economy slowed as the first quarter drew to a close.

Market news

* Asian shares gained on Thursday, retaining positive momentum as the Fed reassured markets that it will keep its very accommodative stance to support growth, and optimism grew over strong corporate earnings after Apple Inc's robust results.

* The US dollar floundered at three-week lows against a basket of major currencies on Thursday, having fallen prey to the Fed's dovish stance on policy.

Also Read: F&O Expiry: Will these stocks give market momentum today?

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