{"id":1293,"date":"2013-04-09T02:40:05","date_gmt":"2013-04-08T22:40:05","guid":{"rendered":"http:\/\/www.dubaigoldprices.com\/?p=1293"},"modified":"2013-04-09T02:40:05","modified_gmt":"2013-04-08T22:40:05","slug":"gold-edges-lower-as-funds-seek-better-yields-in-equities","status":"publish","type":"post","link":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/2013\/04\/09\/gold-edges-lower-as-funds-seek-better-yields-in-equities\/","title":{"rendered":"Gold edges lower as funds seek better yields in equities"},"content":{"rendered":"

\"Gold<\/a><\/p>\n

Gold edges lower as funds seek better yields in equities<\/span><\/h3>\n

Gold hit a 10-month low of $1,539.70 last week and is down nearly 6 percent this year<\/span><\/h3>\n

US gold futures for June delivery were down 0.1 per cent to $1,575.20 an ounce<\/span><\/h3>\n

Gold futures on the Tokyo Commodity Exchange surged as much as 4.8 percent to 5,025 yen ($51.71) per gram<\/span><\/h3>\n

Gold edged lower on Monday, after rising by nearly 2 per cent in the previous session, as funds were seen cutting bullion holdings for better investment yields in riskier assets such as equities.<\/p>\n

Spot gold<\/strong> dropped 0.4 per cent to $1,575.41 an ounce by 1209 GMT, also hurt by a firmer dollar versus a basket of currencies.
\nUS gold futures for June delivery were down 0.1 percent to $1,575.20 an ounce.<\/p>\n

\u201cEquities are stronger, and that\u2019s why we are seeing some profit-taking in gold, but losses could be contained as there is still a lot of uncertainty, especially in Europe, where some issues are re-emerging in Portugal,\u201d Bernard Sin, MKS Capital senior vice-president, said.<\/p>\n

Worries over Eurozone debt problems, which resurfaced last month due to inconclusive elections in Italy and a bailout in Cyprus, were heightened after Portugal\u2019s constitutional court on Friday rejected some of the austerity measures introduced as a condition of its bailout.<\/p>\n

Gold had climbed nearly 2 per cent on Friday, the biggest gain since November, after data showed US employers hired at the slowest pace in nine months in March, backing expectations the Federal Reserve would sustain a bullion-boosting monetary stimulus programme.<\/p>\n

But the metal failed to hold onto gains, with momentum fading as the dollar remained strong and appetite for assets perceived as riskier returned on widespread expectations the US economy will perform better in the longer term despite the latest series of weaker economic data.
\n\u201cIt seems that renewed weakness in the US and Eurozone growth outlook need not produce the drop in the US dollar across the board we saw in 2011,\u201d Citi said in a note.<\/p>\n

\u201cWe suspect that the US cyclical leadership would remain intact even if the economy goes through a \u2018soft patch\u2019 in coming months.\u201d
\nEuropean equities clawed back some of the previous session\u2019s hefty losses, as investors snapped up the beaten-down complex.<\/p>\n

Gold hit a 10-month low of $1,539.70 last week and is down nearly 6 percent this year. In contrast, the S&P 500 stock index has gained almost 9 per cent.<\/p>\n

The release of the FOMC meeting minutes on Wednesday is likely to be the next main economic event for the market, analysts said.
\n\u201cMarket participants will be keen to get further clarity on where Fed members stand on QE, particularly given rising talks of flexibility and potential tapering of asset purchases,\u201d UBS said in a note.<\/p>\n

ETF outflows<\/p>\n

Bullion holdings at the world\u2019s major gold exchange-traded funds fell in the previous week to their lowest since August 2012.
\nMeanwhile, institutional investor George Soros said gold had been destroyed as a safe-haven asset but he expected continued central bank buying to support prices.<\/p>\n

The physical market remained quiet in Asia after Chinese participants returned from a four-day holiday weekend.<\/p>\n

But gold futures in Tokyo jumped almost 5 per cent to near all time-highs, their sharpest daily rise since September 2011, after the yen dropped to near four-year lows on reports the Bank of Japan would begin buying longer-dated bonds immediately to beat deflation.<\/p>\n

Gold futures on the Tokyo Commodity Exchange surged as much as 4.8 percent to 5,025 yen ($51.71) per gram, near the record high of 5,081 yen touched in February.<\/p>\n

The BOJ last week promised to inject about $1.4 trillion into the economy in less than two years, a gamble that sent bond yields plummeting as prices rose on the prospect of massive purchases of debt by the central bank.<\/p>\n

In other precious metals, silver fell 0.3 per cent to $27.21, after tumbling to its lowest level since July 24 on Thursday.
\nPlatinum, which dropped to its lowest since late August last week, was little changed at $1,530.57. Palladium rose 0.7 percent at $731.22.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gold edges lower as funds seek better yields in equities Gold hit a 10-month low of $1,539.70 last week and is down nearly 6 percent this year US gold futures for June delivery were down 0.1 per cent to $1,575.20 an ounce Gold futures on the Tokyo Commodity Exchange surged as much as 4.8 percent […]<\/p>\n","protected":false},"author":3,"featured_media":1294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[296,365,804],"class_list":["post-1293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gold-news","tag-featured","tag-gold-edges-lower-as-funds-seek-better-yields-in-equities","tag-spot-gold"],"_links":{"self":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/posts\/1293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/comments?post=1293"}],"version-history":[{"count":0,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/posts\/1293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/media\/1294"}],"wp:attachment":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/media?parent=1293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/categories?post=1293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/tags?post=1293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}