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Gold set to snap five-week rally on strong US data, equities

Source : REUTERS
Last Updated: Fri, Jan 31, 2014 03:43 hrs
Gold

Gold looked poised to post its first weekly drop in six weeks on Friday as strong U.S. economic growth boosted global equities and the dollar, hurting the metal's safe-haven appeal.

Bullion was also under pressure due to the absence of top buyer China, shut for the Lunar New Year holiday.

FUNDAMENTALS

Spot gold was largely unchanged at $1,244.11 an ounce by 0015 GMT after a 2-percent overnight drop. It is down 2 percent for the week.

U.S. gross domestic product grew at a 3.2 percent annual rate in the final three months of last year, the Commerce Department said on Thursday, in line with economist expectations.

South Africa's AMCU union rejected a 9 percent wage offer on Thursday from leading platinum producers, prolonging a week of industrial action.

South Africa's metalworkers union said it will down tools at a smelter of top platinum producer Anglo American Platinum (AMSJ.J) from Feb 5.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.60 tonnes to 793.16 tonnes on Thursday.

Goldcorp Inc (G.TO) said Canada's antitrust watchdog has indicated it does not intend to challenge the gold miner's move to acquire its smaller rival Osisko Mining Corp (OSK.TO).

MARKET NEWS

The dollar strengthened and global equity markets rebounded on Thursday after data showed the U.S. economy grew strongly in the last quarter of 2013.

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