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PRECIOUS-Gold retains modest gains, but stays near 2-1/2 mth low
September 4, 2014 / 12:56 AM / 3 years ago

PRECIOUS-Gold retains modest gains, but stays near 2-1/2 mth low

SINGAPORE, Sept 4 (Reuters) - Gold clung to small overnight
gains on Thursday on some safe-haven bids due to the Ukraine
crisis, but the metal continued to trade near 2-1/2 month lows
as brighter prospects for the U.S. economy dimmed its appeal. 
    Investors were waiting for a European Central Bank meeting
later in the day to see whether it will deliver a fresh round of
policy stimulus, and its impact on the euro and the dollar.  
    
    FUNDAMENTALS
    * Spot gold was little changed at $1,268.28 an ounce
by 0040 GMT. The metal had fallen to a 2-1/2 month low of
$1,261.19 on Wednesday, before recovering modestly to close up
0.3 percent.
    * President Vladimir Putin outlined plans for a ceasefire in
eastern Ukraine on Wednesday, but Ukraine's prime minister
dismissed the proposal, while France expressed its disapproval
of Moscow's support for separatist forces by halting delivery of
a warship. 
    * Gold, seen as an alternative investment during times of
geopolitical and financial uncertainties, has gained 5 percent
this year largely on tensions in Ukraine and the Middle East.
    * But in recent weeks, a string of encouraging U.S. economic
data, a stronger dollar and weak physical demand in Asia have
pressured bullion. 
    * Data on Wednesday showed new orders for U.S. factory goods
posted a record gain in July and auto sales last month
accelerated to their highest level in 8-1/2 years, offering
further bullish signals for the economy. 
    * SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund and a good measure of investor sentiment,
said its holdings fell 2.69 tonnes to 790.51 tonnes on
Wednesday. 
    * U.S. nonfarm payrolls data due on Friday will be closely
watched for further clues about the economy and the outlook for
the Federal Reserve's monetary stimulus. 
    * On Thursday, all eyes will be on the ECB policy meet. The
ECB is under strong pressure to tackle stubbornly low inflation
at a time when the conflict in Ukraine threatens to destabilise
the region's fragile recovery. 
    * The euro on Wednesday recovered modestly from one-year
lows against the dollar, but traders said euro bears were just
taking a breather ahead of the ECB meet. Any further weakening
of the euro would hurt gold. 
    * For the top stories on metals and other news, click
 or 
    
    MARKET NEWS
    * An index of stocks worldwide rose on Wednesday after
Ukraine and Russia took steps toward a ceasefire and traders
eyed potential ECB stimulus. 
    
    DATA/EVENTS (GMT)
    1230 US International Trade MM Jul 
    1230 US Initial Jobless Claims w/e 
    1230 US Productivity Revised Q2 
    1345 US Markit Comp Final PMI Aug 
    1345 US Markit Svcs PMI Final Aug 
    1145 EZ ECB Refinancing rate Sep 
    1145 EZ ECB Deposit rate Sep 
    1215 U.S. ADP National Employment Aug 
    
    PRICES AT 0040 GMT    
 Metal            Last      Change   Pct chg
                                            
 Spot gold         1268.28    -0.29    -0.02
 Spot silver         19.15     0.02      0.1
 Spot platinum      1409.3      7.7     0.55
 Spot palladium      873.5      1.9     0.22
 Comex gold         1269.2     -1.1    -0.09
 Comex silver       19.215    0.026     0.14
 Euro               1.3148                  
 DXY                82.857                  
                                            
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Joseph Radford)

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