Gold eases on U.S. data, stimulus concerns

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U.S. jobs and manufacturing data raised fears of an imminent pull-back in the Federal Reserve’s stimulus measures.

FUNDAMENTALS

Spot gold fell 0.1 percent to $1,373.56 an ounce by

0014 GMT. It is headed for a small loss for the week after a 5 percent gain last week.

The number of Americans filing new claims for jobless benefits last week held near a six-year low and U.S. manufacturing activity rose this month, suggesting the economy is starting to find a firmer footing.

The U.S. economy can withstand a reduction in the Fed’s stimulative asset-purchase program, even though the easy-money policies have boosted U.S. manufacturers and other companies, a top central bank official said on Thursday.

Primary dealers surveyed before the Fed’s July policy meeting said they expected the U.S. central bank to trim its asset purchases by $15 billion starting in September.

In South Africa, labour unrest threatened to hit its struggling gold industry, already squeezed by rising costs and falling bullion prices. A strike in the gold industry could start next week following an impasse in salary talks with mining companies.

Barrick Gold Corp, the world’s largest gold producer, on Thursday said it has agreed to sell three of its high-cost gold mines in Australia to Gold Fields Ltd for $300 million.

Gold Fields said it was not afraid of closing mines to make money, including its Damang operation in Ghana, and would revamp its business to generate profit at a spot gold price of $1,300 an ounce.

 

Precious metals prices 0014 GMT

Metal

Last

Change

Pct chg

YTD pct chg

Volume

Spot Gold

1373.56

-1.68

-0.12

-17.97

 
Spot Silver

23.09

-0.02

-0.09

-23.75

 
Spot Platinum

1534.24

-2.26

-0.15

-0.05

 
Spot Palladium

751.47

-0.03

0

8.59

 
COMEX GOLD DEC3

1373.3

2.5

0.18

-18.05

2882

COMEX SILVER SE P3

23.11

0.07

0.33

-23.74

784

Euro/Dollar

1.3345

       
Dollar/Yen

98.89

       

COMEX gold and silver contracts show the most active months

 

Source: Reuters

Source: Bullion Bulletin

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