MW: Gold retreats from near four-month highs as Greek help seen
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- Gold on Thursday retreated from near four-month highs as the European single currency stabilized versus a broadly lower U.S. dollar on hopes a rescue agreement for debt-strapped Greece will soon be reached.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange eased $3.9 to 1,167.90 an ounce.
On Wednesday, Gold climbed for a fourth day straight to finish at $1,171.80 an ounce, its highest close since early December, after a downgrade of Spain escalated worries about a spreading sovereign debt crisis in Europe.
The euro, stocks and other assets viewed as risky sold off on the news, but were on the mend early Thursday after reports that proposed aid for Greece would be larger than first thought.
The dollar index (DXY 81.99, -0.39, -0.48%) , which tracks the greenback against a basket of major currencies, slipped to 81.966, compared to 82.293 late Tuesday.
The end of the Federal Reserve's policy-setting meeting on Wednesday had central bankers holding interest rates at historic lows while maintaining the 'extended period" language in its statement.
President Obama on Thursday is expected to nominate Janet Yellen to be the vice chairman of the Fed, and Massachusetts Institute of Technology economist Peter Diamond and Maryland banking regulator Sarah Bloom Raskin to fill vacancies on the board, according to published reports.
"If these new nominees are confirmed by the Senate, President Obama will have clearly put his stamp on the Fed by installing four of the seven governors, including giving Chairman Bernanke a second four-year term," said analysts at Action Economics.
Holdings on the SPDR Gold Trust (GLD 114.30, -0.01, -0.01%) on Wednesday hit another record 1,152.9 tons, according to the fund, the world's biggest exchange-traded fund backed by gold.
