Gold inched up on Tuesday,recovering from a one-week low hit in the previous session when the precious metal dipped together with other commodities as weak German data fanned worries about global growth,giving the dollar a boost.
Investors continued to pile into gold,sending holdings of physically backed exchange-traded funds (ETF) to a record high,with expectations that recent stimulus moves by central banks will support further strength in bullion.
* Spot gold inched up 0.1 percent to $1,765.85 an ounce by 0027 GMT,after dropping to a one-week low of $1,755.30 in the previous session.
* U.S. gold edged up 0.2 percent to $1,768.50.
* German business sentiment dropped for a fifth straight month in September,raising fears of recession,as companies struggled with a bleaker economic outlook and the European Central Bank’s bond buying plan failed to create much boardroom cheer.
* The Federal Reserve’s latest round of monetary stimulus will help get the U.S. economy back on track and speed the return to full employment,said John Williams,president of the San Francisco Federal Reserve Bank.
* SPDR Gold Trust,the world’s biggest gold-backed exchange-traded fund,said its holdings hit a record high of 1,326.808 tonnes by September 24.
* The total holdings of gold ETFs also hit an all-time high,at 73.765 million ounces,or 2,294.348 tonnes.
* Spot palladium,which staged with its sharpest one-day decline in more than six months with a 4.1-percent drop on Monday,was little changed at $640.60 an ounce.
* U.S. stocks edged lower on Monday as a disappointing forecast from Caterpillar (CAT.N) and weak German data increased concerns that global growth may remain sluggish.
* The euro firmed a tad on Tuesday,after falling to its lowest in more than a week against the dollar as a weak German business sentiment report and uncertainty about debt-plagued Spain added to concerns about the euro zone’s slumping economy.