Gold regains strength on dollar

But gains could be limited after holdings in the world's largest gold-backed ETF dropped to their weakest since early June.

Gold rebounded on Thursday as the US dollar weakened against other currencies but gains could be limited after holdings in the world's largest gold-backed ETF dropped to their weakest since early June.

FUNDAMENTALS

* Spot gold added $2.55 an ounce to $1,165.10 an ounce by 0051 GMT after falling as low as $1,156.90 on Wednesday, its weakest since late April.

* U.S. gold futures for August delivery rose $4.5 $1,164.9 an ounce.

* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell to 1,282.279 tonnes by July 28 from 1,300.829 on July 27 -- their lowest since early June. The holdings hit a record at 1,320.436 tonnes on June 29.

MARKET NEWS

* The Nikkei fell 1 percent on Thursday as U.S. stocks slipped after weak durable goods figures and a downbeat assessment of the economy from the Fed's Beige Book kept the benchmark S&P 500 trapped below its 200-day moving average.

* The U.S. dollar eased towards three-month lows against a basket of currencies on Thursday, as fresh evidence of a patchy recovery in the U.S. led more investors to go short on the greenback.

* U.S. crude futures were steady around $77 a barrel on Thursday after falling for a second day on a surprise build in crude oil inventories.

SUBSCRIBE to Mineweb.com's free daily newsletter now.

SHARE THIS ARTICLE

Disclaimer

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning,  and concluding, 24 hours later,  in the Vancouver evening.  If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Editor in Chief in Johannesburg, and we will include you in our editing and expanding on our stories. Email him at alechogg@gmail.com

Print story      Email story      Subscribe to free newsletter

Back