Gold rebounds but outlook clouded by lower investment
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Gold rebounds but outlook clouded by lower investment
Business & Markets 2013
Written by Reuters
Wednesday, 24 April 2013 18:44
A + / A - / Reset
LONDON (April 24): Gold rose on Wednesday as solid
physical demand encouraged speculative buying after the
previous session's drop, while support also came from
weak German economic data, which fanned speculation
the European Central Bank could cut interest rates.
Investor confidence is still reeling after bullion's
spectacular fall and outflows from exchange-traded funds
show no signs of abating, although demand for gold bars
and coins surged after prices plunged to their weakest in
over two years on April 16.
Spot gold rose 0.7 percent to $1,421.81 an ounce by 0952
GMT, after falling for the first time in six session on
Tuesday. Gold sank a combined $225 on April 12 and 15
in a sell-off that surprised ardent gold investors and bulls.
U.S. gold futures for June delivery were up 0.9 percent to
$1,422.30.
European shares advanced, building on the previous
session's hefty gains, after weak German Ifo survey fuelled hopes of a European Central Bank rate cut
and continued liquidity injection.
The European Central Bank meets next week and there is growing speculation that a slew of weak
economic data and subdued inflation will drive it to cut rates.
"You could argue that gold's rebound today is in line with that seen in other metals and equities due to
expectations of more monetary easing (after German Ifo data)," VTB Capital analyst Andrey
Kryuchenkov said.
"The slightly weaker dollar is also supportive but for gold it's difficult to assess what the drivers are
after last week's sharp sell-off and investors are still sidelined," he added.
Written by Reuters
Wednesday, 24 April 2013 18:44
A + / A - / Reset
LONDON (April 24): Gold rose on Wednesday as solid
physical demand encouraged speculative buying after the
previous session's drop, while support also came from
weak German economic data, which fanned speculation
the European Central Bank could cut interest rates.
Investor confidence is still reeling after bullion's
spectacular fall and outflows from exchange-traded funds
show no signs of abating, although demand for gold bars
and coins surged after prices plunged to their weakest in
over two years on April 16.
Spot gold rose 0.7 percent to $1,421.81 an ounce by 0952
GMT, after falling for the first time in six session on
Tuesday. Gold sank a combined $225 on April 12 and 15
in a sell-off that surprised ardent gold investors and bulls.
U.S. gold futures for June delivery were up 0.9 percent to
$1,422.30.
European shares advanced, building on the previous
session's hefty gains, after weak German Ifo survey fuelled hopes of a European Central Bank rate cut
and continued liquidity injection.
The European Central Bank meets next week and there is growing speculation that a slew of weak
economic data and subdued inflation will drive it to cut rates.
"You could argue that gold's rebound today is in line with that seen in other metals and equities due to
expectations of more monetary easing (after German Ifo data)," VTB Capital analyst Andrey
Kryuchenkov said.
"The slightly weaker dollar is also supportive but for gold it's difficult to assess what the drivers are
after last week's sharp sell-off and investors are still sidelined," he added.
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