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Reuters, (12/6) -- Gold extended
declines into a second session on Wednesday as fears lingered that the
Federal Reserve could curb its stimulus programme as the U.S. economy
shows signs of recovery.
Spot gold had fallen 0.2 percent to $1,376.29 an ounce by 0022 GMT, after a 0.5 percent drop the day before as equity and commodity markets were rattled by the absence of fresh steps from the Bank of Japan to calm turbulence in the domestic bond market. Bullion had fallen to its lowest in nearly three weeks on Tuesday before recovering some of the losses. U.S. gold was little changed at $1,376.20. A Standard & Poor's upgrade of the U.S. credit outlook on Monday prompted investors to believe the economy was strong enough for the Fed to begin scaling back its bond purchases. Such a step would dent gold's appeal as a hedge against inflation. BOJ Governor Haruhiko Kuroda said the central bank would consider fresh steps to calm markets if borrowing costs spike again in the future, but the central bank held off on new measures on Tuesday arguing that bond markets had stabilised. Outflows from gold-backed exchange-traded products totalled $5.7 billion in May, compared with $8.7 billion in April, according to Blackrock. In the first four trading days of June, outflows amounted to $374 million. |
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:19 AM
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