SINGAPORE, Sept 4 (Reuters) – Gold edged up to its highest
level in more than five months on Tuesday, as lacklustre
manufacturing data from around the globe fanned speculation of
imminent easing measures from central banks.
FUNDAMENTALS
* Spot gold rose to $1,696.36 an ounce, the highest
since mid-March, and stood up 0.2 percent at $1,695.49 by 0105
GMT.
* U.S. gold gained 0.6 percent to $1,698.
* Moody’s Investors Service has changed its outlook on the
Aaa rating of the European Union to negative, warning it might
downgrade the bloc if it decides to cut the ratings on the EU’s
four biggest budget backers: Germany, France, UK and the
Netherlands.
* A contraction in manufacturing business spread further
around the world in August as the three-year-old euro zone debt
crisis inflicted more damage on the global economy, business
surveys showed.
* Purchases of short term sovereign bonds by the European
Central bank would not breach European Union rules, the ECB’s
President Mario Draghi told European lawmakers on Monday,
according to a recording obtained by Reuters. Draghi is expected
to give some details of a new debt-buying programme on Thursday.
* Holdings of gold-backed exchange-traded funds rose to a
record high of 71.729 million ounces by the end of last week.
August recorded an inflow of 1.8 million ounces, representing a
nearly 3 percent rise.
* South African police fired teargas and rubber bullets to
disperse striking miners at a gold mine near Johannesburg on
Monday, the latest outbreak in a wave of labour militancy
spreading from platinum mining into other parts of the sector.
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MARKET NEWS
* The euro held its ground on Tuesday even after Moody’s
changed to negative its outlook for the European Union, with
hopes running high the ECB will unveil a plan tackle the
region’s debt crisis later this week.
* Asian shares steadied on Tuesday as investors saw weak
regional and global economic data as raising the prospect for
further stimulus from central banks to underpin growth, while
Europe kept hopes for some progress in tackling its debt crisis.
DATA/EVENTS
0430 Australia RBA cash rate
0900 EZ Producer price July
1400 U.S. ISM Manufacturing PMI
1400 U.S. Construction spending
PRICES
Precious metals prices 0105 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1695.49 3.70 +0.22 8.42
Spot Silver 32.25 0.16 +0.50 16.47
Spot Platinum 1550.50 6.00 +0.39 11.31
Spot Palladium 632.76 5.36 +0.85 -3.03
COMEX GOLD DEC2 1698.00 10.40 +0.62 8.37 45545
COMEX SILVER DEC2 32.30 0.86 +2.73 15.71 16251
Euro/Dollar 1.2592
Dollar/Yen 78.32
COMEX gold and silver contracts show the most active months
(Reporting by Rujun Shen; Editing by Ed Davies)
