Gold slips as investors await outlook for bond purchases

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Gold fell in early Asian trading on Monday as investors await indications from a key U.S. Federal Reserve meeting this week on the pace of the central bank’s bond buying programme.
FUNDAMENTALS
* Spot gold eased 0.2 percent to $1,387.24 an ounce by 0022 GMT. Bullion closed up about 0.5 percent for the week on Friday helped by strong demand for coins and bars, a pullback in U.S. stocks and rising tensions in the Middle East.
* U.S. gold fell slightly to $1,386.9.
* Markets have been on the edge since May 22 when Fed Chairman Ben Bernanke said the bank could scale back its stimulus programme if the economy improves.
* A reduction in the $85 billion monthly bond purchases could hurt gold, typically seen as a hedge against inflation. The Fed meets on June 18-19.
* Hedge funds and money managers slashed their bullish bets in gold and silver futures and options in the week to June 11, a report by the Commodity Futures Trading Commission showed on Friday.
* Gold output in Australia, the No. 2 producer behind China, fell 5 percent in the first quarter on weather-related disruption to 63.5 tons, according to the latest Gold Quarterly Review by Surbiton Associates.
* HSBC lowered its platinum price forecasts for this year and next, even though supplies are tight, because the metal has been influenced by the sharp sell-off in gold.
* Anglo American Platinum said on Saturday operations at its Thembelani mine in South Africa were back to normal after a “group of employees” on Friday prevented 2,400 workers from going above ground.
Precious metals prices 0022 GMT

Metal

Last

Change

Pct chg

YTD pct chg

Volume

Spot Gold

1387.24

-2.96

-0.21

-17.16

Spot Silver

21.97

-0.07

-0.32

-27.44

Spot Platinum

1441.5

-3.5

-0.24

-6.09

Spot Palladium

726.47

-3.03

-0.42

4.98

COMEX GOLD AUG3

1386.9

-0.7

-0.05

-17.24

1724

COMEX SILVER JU L3

Euro/Dollar

1.3342

Dollar/Yen

94.49

COMEX gold and silver contracts show the most active months
Source: Reuters
Source: Bullion Bulletin

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