Gold price edges lower for second session on stimulus fears

Spot gold fell 0.1 per cent to $1,384.01 an ounce by 0023 GMT after losing about 0.15%.

Written by Reuters | Singapore | Published: June 14, 2013 9:06:08 am

Gold prices eased for a second session on Friday as investors worried about an early end to the Federal Reserve’s massive bond-buying stimulus on the back of strong US data.

FUNDAMENTALS

* Spot gold fell 0.1 percent to $1,384.01 an ounce by 0023 GMT after losing about 0.15 percent on Thursday following stronger-than-expected U.S. Data.

* US gold rose about $6 to $1383.6.

* US retail sales rose more than expected in May and first-time applications for unemployment benefits fell last week,signs of resilience in the economy.

* Investors fear a strengthening economy could prompt the Fed to start winding down its $85 billion monthly bond purchases that have supported gold prices.

* Asian shares recovered from multi-month lows on Friday,as a rebound in U.S. equities on the back of upbeat economic data calmed nerves after a bruising selloff,but investors remain cautious ahead of next week’s Federal Reserve policy meeting. * Commodity funds run by some of the most high-profile traders have declared negative returns through the first five months of the year,performance data from their investors showed on Thursday.

* Net gold imports into India have fallen from an average of $135 million in the first half of May to $36 million in the second half,the finance minister said. The government has raised the import duty on gold and curbed gold financing in an effort to cut its current account deficit.

* SPDR Gold Trust,the world’s largest gold-backed exchange-traded fund,said its holdings fell 0.63 percent to 1,003.53 tonnes on Thursday to fresh four-year lows.

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