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PRECIOUS-Gold eases as dollar, equities recover on strong U.S. data
October 20, 2014 / 12:46 AM / 3 years ago

PRECIOUS-Gold eases as dollar, equities recover on strong U.S. data

SINGAPORE, Oct 20 (Reuters) - Gold ticked lower on Monday
after two straight weekly gains, with strong U.S. economic data
allaying fears over a slowdown in the global economy, supporting
equities and dimming bullion's safe-haven appeal. 
    * Spot gold had eased 0.2 percent to $1,235.20 an
ounce by 0030 GMT, slipping for a third session. The metal has
gained nearly 4 percent in the past two weeks and hit a
one-month high of $1,249.30 on Wednesday. 
    * World equity markets rallied on Friday, with European
stocks surging the most in more than two years, as investors
moved back into beaten-down markets on solid U.S. corporate
earnings and rising consumer sentiment. 
    * The S&P 500 also gained on Friday, but posted a fourth
straight weekly decline, its longest streak in more than three
years, as concerns about the global economy, a resurgent
European debt crisis and the Ebola virus sparked the downturn.
    * Investors took comfort from Friday's solid U.S. data. The
Thomson Reuters/University of Michigan index of consumer
sentiment unexpectedly rose in early October to its highest
level since July 2007, while groundbreaking for new homes rose
more than expected last month. 
    * Nonetheless, worries over the health of the global economy
have not been completely removed, as seen in investors pouring
into safe-haven assets such as gold.
    * Hedge funds and money managers increased their bullish
futures and option bets in gold in the week up to Oct. 14 after
eight consecutive weekly declines, the Commodity Futures Trading
Commission said on Friday. 
    * SPDR Gold Trust, the world's top bullion-backed
exchange traded fund, has also been seen an uptick in
    * Five companies have been short-listed to replace the
century-old London gold benchmark with a new electronic system,
which is expected to be in place within the next few months, the
London Bullion Market Association said. 
    * Growth in gold mine output from number one producer China
is set to slow significantly in coming years in the face of
declining ore grades and waning profitability, an analyst at
Business Monitor International said on Friday. 
    * For the top stories on metals and other news, click
    * Asian stocks started the week on a brighter note on
Monday, after solid U.S. data and earnings calmed tumult in
global finiancial markets and reassured investors worried about
the health of the world economy.
    0600 Germany Producer prices Sep 
    0800 Euro zone Current account Aug 
    0800 Italy Industrial orders Aug
    PRICES AT 0030 GMT    
 Metal             Last      Change    Pct chg
 Spot gold           1235.2     -2.49     -0.2
 Spot silver          17.24      0.01     0.06
 Spot platinum       1264.1      10.8     0.86
 Spot palladium      755.97      5.07     0.68
 Comex gold          1235.9      -3.1    -0.25
 Comex silver         17.28    -0.051    -0.29
 Euro                1.2758                   
 DXY                 85.225                   
 COMEX gold and silver contracts show the most
 active months
 (Reporting by A. Ananthalakshmi; Editing by Joseph Radford)

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