SINGAPORE, Oct 16 (Reuters) – Gold held steady on Tuesday
above a one-month low hit in the previous session, as upbeat
U.S. retail sales data appeared to undermine the necessity for
stimulus measures and dented gold’s appeal as a hedge against
monetary easing.
FUNDAMENTALS
* Spot gold was little changed at $1,736.39 an ounce
by 0032 GMT, after falling to a one-month low of $1,728.75 in
the previous session. It dropped 1 percent on Monday, its
biggest one-day decline in three months.
* U.S. gold traded nearly flat at $1,738.20.
* U.S. retail sales rose in September as Americans stepped
up purchases of everything from cars to electronics, a sign that
consumer spending is driving faster economic growth.
* The data builds on recent signs of growing economic
momentum, including a drop in the jobless rate last month and a
rise in consumer spending.
* Federal Reserve officials offered divergent opinions on
Monday about the correct stance for monetary policy, pitting a
hawk against a dove over the inflation risk posed by the central
bank’s massive efforts to buoy U.S. growth.
* Investors fretted over Spain’s bailout plan. Euro zone
officials have said that Madrid could ask for financial aid next
month and if it does the request would likely be dealt with
alongside a revised loan programme for Greece and a bailout for
Cyprus in one big package.
* Holdings of gold-backed exchange traded funds inched up to
74.991 million ounces by Oct. 14 after two sessions of losses.
The amount of gold by these ETFs rose to a record high of 75.03
million ounces last week.
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MARKET NEWS
* U.S. stocks climbed on Monday, rebounding from last week’s
losses after Citigroup’s earnings and retail sales sharply
exceeded expectations.
* The euro inched up on Tuesday, as investors awaited
clarity on when Spain may request a bailout.
DATA/EVENTS
0900 Germany ZEW economic sentiment Oct
0900 Euro zone Inflation Sep
0900 Euro zone Eurostat trade Aug
1145 U.S. ICSC chain store sales
1230 U.S. CPI Sep
1255 U.S. Redbook weekly retail sales
1315 U.S. Industrial output Sep
1400 U.S. NAHB housing market index Oct
PRICES
Precious metals prices 0032 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1736.39 0.90 +0.05 11.04
Spot Silver 32.70 0.01 +0.03 18.09
Spot Platinum 1635.24 -0.02 -0.00 17.39
Spot Palladium 630.22 0.62 +0.10 -3.41
COMEX GOLD DEC2 1738.20 0.60 +0.03 10.94 3461
COMEX SILVER DEC2 32.74 0.00 -0.01 17.28 824
Euro/Dollar 1.2960
Dollar/Yen 78.75
COMEX gold and silver contracts show the most active months
(Reporting by Rujun Shen; Editing by Ed Davies)
