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PRECIOUS-Gold poised for worst week in two months on economic optimism
May 30, 2014 / 12:41 AM / 3 years ago

PRECIOUS-Gold poised for worst week in two months on economic optimism

SINGAPORE, May 30 (Reuters) - Gold steadied after a
three-day losing streak on Friday but the metal was headed for
its biggest weekly drop in two months as an improving U.S.
economic outlook dented its investment-hedge appeal.
    
    FUNDAMENTALS
    * Spot gold was up 0.2 percent to $1,257.90 an ounce
by 0021 GMT, but not far from a 16-week low of $1,251.10 hit in
the previous session. The metal is down nearly 3 percent for the
week.
    * Thursday data showed that the U.S. economy contracted for
the first time in three years in the first quarter, but other
data over the week on jobless benefits, manufacturing and
consumer confidence indicated the economy was recovering well. 
    * Gold was also hurt by stronger equities and a firmer U.S.
dollar, while the geopolitical situation in Ukraine was also
being eyed.
    * Pro-Russian separatists shot down a Ukrainian army
helicopter on Thursday, killing 14 soldiers including a general,
as government forces pressed ahead with an offensive to crush
rebellions in the east swiftly following the election of a new
president. 
    * Gold is often seen as a safe-haven investment at times of
geopolitical uncertainty and lower equity markets.    
    * Major metal exchanges emerged as contenders in developing
an alternative to the London silver price benchmark, or "fix",
after the century-old system for setting the globally recognised
price is disbanded in August.    
    * For the top stories on metals and other news, click
, or 
    
    MARKET NEWS
    * Global equity markets hit an all-time high on Thursday,
boosted by the U.S. S&P 500 which scored its third record
closing high in four sessions as investors shrugged off data
that showed the U.S. economy contracted in the first quarter.
 
    
    DATA/EVENTS (GMT)
    0600 Germany Retail sales April 
    0900 Italy Consumer prices May 
    1230 U.S. Personal income April 
    1345 U.S. Chicago PMI May

    PRICES AT 0021 GMT     
 Metal           Last     Change  Pct chg
                                         
 Spot gold        1257.9     2.3     0.18
 Spot silver       19.04    0.08     0.42
 Spot platinum   1459.74    7.14     0.49
 Spot palladium   833.45    2.55     0.31
 Comex gold       1257.8     1.5     0.12
 Comex silver     19.055   0.041     0.22
 Euro               1.36                 
 DXY              80.494                 
                                         
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)

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