Gold trades near four-month high on signs US recovery loses momentum . . . . . . . . . . . . Precious-Gold resumed its advance on Wednesday as investors sought haven demand on signs U.S. recovery is losing steam. A report released yesterday showed that U.S. consumer confidence came in at 78.1 in February, lower than forecasts of 80.0, while January’s reading was revised down to 79.4 from 80.7. Still, uncertainty looms about the pace of stimulus reduction by the Fed after the recent downbeat data from the United States. Fed minutes revealed that policymakers would cut their monthly bond purchases by $10-billion steps unless the economy shows any deterioration in economic data. Hence, investors will keep their eyes open on the latest update from U.S. data. Later in the day, a report may show new home sales recorded 402,000 in January from 414,000 in December. Gold is now close to ending this month on another gain, taking advantage of haven demand after the latest rout in emerging market, which was ignited last week with the political turmoil on Ukraine. Meanwhile, the yellow metal is trading around $1342.48 an ounce after hitting a high of $1345.24 and a low of $1337.61. So far, gold has recorded nearly 11.36 percent advance this year, following last year’s 28 percent drop, yet the breach if $1359 is needed to continue the rally. The U.S. dollar inched up against a basket of major currencies to hover around 80.18 after opening at 80.15, according to the dollar index. Crude oil for April’s delivery slipped to trade around $101.74 a barrel after setting a high of $101.57. #egyptyard
Posted on: Wed, 26 Feb 2014 08:12:37 +0000
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