Asia Brief: Gold Trading Near 2-Month High, Crude Oil Little Changed Gold hovered near 2-month highs Monday after recording its best run of weekly gainers since September 2012,as worries in emerging economies and poor performance in the equity market enhanced demand for the precious Yellow metal. Gold climbed 1.3% last week after the fall in equities and on worries of a slowdown in China. Throughout the prior 5 wks, the precious Yellow metal has gained 5.4% after falling to the lowest in 6 months on 31 December on Chinese physical demand due to the Lunar New Year holiday. Data released last week showed that China’s manufacturing reported an unexpected decline in January, raising concerns the world’s 2nd biggest economy may face an easing in growth. US shares fell the most since June Friday, recording its weakest for benchmark indexes since Y 2012 on woes from emerging economies. Political woes from Turkey, India and Thailand as well as currency devaluation in Argentina have fueled concerns the main engine for global recovery may lose power in Y 2014. The focus is predicted to be on the Fed meeting on 28-29 January as it would decide the pace at which policymakers would scale back QE stimulus. Expectations are in favor of seeing a cut in bond purchases by another $10-B for the 2nd time in 6 wks during this week’s meeting. The Fed decided on 18 December to cut $10-B of its monthly bond purchases to $75-B starting from January until nothing by the end of Y 2014. The Fed has referred that the pace of stimulus reduction would depend on the improvement in the economy. Gold is trading around 1266.86 after hitting a high of 1278.25 and a low of 1266.21 Monday, where the metal probably halted its gains after tapping Key resistance near 1280 oz.. The USD rose Vs a basket of major currencies to hover around 80.57 after hitting a low at 80.47. Crude Oil for Mar delivery is little changed to trade near the session’s opening around 96.92 bbl.

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