RTRS: Gold eases as dollar strengthens, equities firm
LONDON July 12 (Reuters) - Gold eased a touch in Europe on
Monday as the dollar firmed and a recovery in equity markets
pointed to improved appetite for risk, undermining interest in
bullion as an alternative asset.
Gold prices rose to a record high $1,264.90 an ounce last
month, but a retreat in concerns over euro zone sovereign debt
levels have removed some demand for the metal as a haven from
turmoil in other markets.
The world's largest exchange-traded fund, New York's SPDR
Gold Trust (GLD), saw a further small outflow from its holdings
on Friday, suggesting investment appetite for physical gold is
softening, analysts said.
From a technical perspective, the precious metal is now
looking vulnerable after last week's losses.
"Gold continues to consolidate beneath the 50-day average
(now $1,218)," said technical analysts at Barclays Capital.
"Such price action is bearish, and a break below $1,183 would
likely resume the downtrend to $1,155/65."
PRICES
* Spot gold XAU= was at $1,208.60 an ounce at 0643 GMT
compared with $1,211.85 late in New York on Friday.
* Silver XAG= was at $18.04 from $18.06.
* Platinum XPT= at $1,522 from $1,529.
* Palladium XPD= at $452.68 from $456.50.
DATA/EVENTS
* Eurogroup meeting takes place in Brussels.
[ECI/US] [ECI/EURO] [ECI/GB]
[M/DIARY] [MTL/DIARY]
MARKET NEWS
* The dollar rose 0.4 percent against the euro EUR= after
the single currency touched a two-month high on Friday. The yen
eased after election results showed political uncertainty ahead
for Japan. [FRX/]
* U.S. crude oil futures hovered at around $76 a barrel on
Monday as China's bigger-than-expected trade surplus in June
eased worries about a slowdown for the global economic recovery
and oil demand. [O/R]
* Asian stocks mostly rose, with investors reasonably upbeat
as they awaited a string of U.S. corporate earnings out this
week. Japanese shares climbed as investors shrugged off a major
election loss suffered by Japan's government over the weekend.
[MKTS/GLOB]
* European stock index futures pointed to a higher open on
Monday, as stocks were poised to extend last week's rally
following strong trade figures from China that helped lift
sentiment on the global economy. [.EU]
FUNDAMENTALS
* The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD.P), said its holdings fell to 1,314.515 tonnes
by July 9 from 1,316.036 on July 8. The holdings hit a record at
1,320.436 tonnes on June 29. [GOL/SPDR]
TECHNICALS
* Gold support at $1,185, resistance at $1,218, 14-day RSI
at 45.4.
* Silver support at $17.56, resistance at $18.24, 14-day RSI
at 45.0.
* Platinum support at $1,487, resistance at $1,536, 14-day
RSI at 43.5.
* Spot gold should ease back to the lower channel line
support at $1,200 per ounce as a minor wave "c" could have
completed, Reuters market analyst Wang Tao said. [ID:nSGE66B011]
For related news and prices, click on the codes in brackets:
Spot gold/silver XAU= XAG= Platinum/palladium XPT=XPD=
Gold lease rates LGLR Comex gold futures <0#GC:>
Europe/Asia prices CBOT 100 oz gold futures <0#ZG:>
RELATED NEWS AND OTHER TOPICS
Precious metals news [GOL] All metals news [MTL]
Metals summary [GLANCE/MTL] Index of summaries [GLANCE/]
All commodities news [C] Metals diary [MTL/DIARY]
Ldn Bullion Mkt Assoc LBMA01 Foreign exchange rates FX=S
SPEED GUIDES
COMMODS PRECIOUS1 REUTERS
