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PRECIOUS-Gold slips from $1,300 on profit-taking ahead of ECB
January 22, 2015 / 12:46 AM / 3 years ago

PRECIOUS-Gold slips from $1,300 on profit-taking ahead of ECB

SINGAPORE, Jan 22 (Reuters) - Gold eased on Thursday, moving
further away from a five-month high above $1,300 an ounce
reached in the previous session, hurt by profit-taking ahead of
a key European Central Bank meeting.
    
    FUNDAMENTALS
    * Spot gold fell 0.2 percent to $1,291 an ounce by
0027 GMT. The metal reached $1,305, its highest since August, on
Wednesday. 
    * After a quick climb of about 9 percent this month, traders
are adjusting positions ahead of the ECB policy meet. 
    * The metal has rallied on safe-haven bids from political
and economic uncertainties in Europe, along with concerns over
the health of the global economy. 
    * The ECB is poised to announce a plan on Thursday to buy
government bonds, resorting to its last big policy tool for
breathing life into the flagging euro zone economy and fending
off deflation. 
    * The stimulus measures should increase demand for bullion,
but investors are cautious about the impact of such a move on
the euro and the dollar. 
    * The worries were reflected in SPDR Gold Trust, the
world's top gold-backed exchange-traded fund, which saw outflows
of 0.24 percent to 740.45 tonnes on Wednesday. 
    * In other industry news, Indian gold importers are offering
a discount of up to $16 an ounce versus London prices, the
widest in 17 months, as jewellers curtail purchases ahead of a
possible cut in the import duty. 
    * The New Year's rally in gold stocks offers a respite for
the beaten-down sector, but it masks deep-seated problems of
bloated debt, weak growth prospects and overvalued assets that
will emerge when miners post year-end results in coming weeks.
 
    * Chile's environmental regulator is re-evaluating penalties
on Barrick Gold Corp's Pascua-Lama project, a process
that could include cancelling the embattled mine's permit, the
head of the government body told a local daily newspaper.
 
    * For the top stories on metals and other news, click
 or 
    
    MARKET NEWS
    * The dollar slipped against the euro on Wednesday after
some traders cut back on risk by reversing long-standing bets
against the euro. 
    * The Canadian dollar languished at its lowest in nearly six
years early on Thursday, having suffered a massive drop after
the Bank of Canada stunned markets by cutting interest rates.
    
    DATA/EVENTS (GMT)
    0900 Italy Industrial orders Nov 
    1330 European Central Bank announces outcome of policy 
meeting 
    1330 U.S. Weekly jobless claims 
    1400 U.S. Monthly home price index Nov 
    1445 U.S. Markit manufacturing PMI flash Jan 
    1500 U.S. Consumer confidence Jan

    PRICES AT 0027 GMT    
 Metal             Last     Change  Pct chg
                                           
 Spot gold            1291   -2.06    -0.16
 Spot silver         18.06   -0.05    -0.28
 Spot platinum      1272.4     3.9     0.31
 Spot palladium     764.98    0.98     0.13
 Comex gold         1291.2    -2.5    -0.19
 Comex silver        18.12  -0.073     -0.4
 Euro               1.1598                 
 DXY                92.869                 
                                           
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)

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