http://www.50parkcapital.com/wp-content/uploads/2016/05/50-capital-park-logo9.png 0 0 email@example.com http://www.50parkcapital.com/wp-content/uploads/2016/05/50-capital-park-logo9.png firstname.lastname@example.org 14:02:442013-02-19 14:02:45Adam Sarhan Reuters Quote: PRECIOUS-Gold drops near 6-month low on economic optimism
Tue Feb 19, 2013 1:04pm EST
* Investors focus on equities, S&P rises to 5-year high
* Markets eye FOMC minutes Wednesday for US monetary outlook
* Platinum down after Amplats resumes SAfrican mine
(Updates prices, adds new comment)
By Clara Denina
NEW YORK, Feb 19 (Reuters) – Gold fell near a six-month low
on Tuesday, holding just above $1,600 an ounce, as an equities
rally and signs of an improving global economic outlook dented
bullion’s safe-haven appeal.
The metal fell 0.5 percent as investors were drawn to
riskier assets as the S&P 500 climbed to a five-year high
with a string of recent merger activity suggesting stocks could
offer even more value.
Technical weakness also sent precious metals lower across
the board. Silver fell around 2 percent to a six-month low.
Fading currency risks about a chaotic break-up of the euro
zone and recent data showing continued economic recovery around
the world have lessened the need for bullion among investors,
“You are seeing gold become an asset that investors no
longer need to jump in on because the fact that these currencies
are not going any time soon. So, the currency hedge is reduced
markedly,” said Adam Sarhan, chief executive of Sarhan Capital.
Spot gold fell 0.6 percent to $1,600.66 an ounce by
12:14 p.m. EST (1714 GMT), having earlier hit a low of
$1,600.34, near a six-month low of $1,598.04 hit on Friday.
U.S. gold futures for April delivery dropped $8.90 to
$1,600.60, with trading volume about 10 percent above its
250-day average, preliminary Reuters data showed.
Volume was higher than usual as it included Monday’s
electronic trading as U.S. markets were shut for the President’s
Last week’s 3.5 percent drop – the largest weekly fall since
May 2012 – made gold vulnerable to further losses in the short
term, traders said.
U.S. regulatory selling showing bullion selling by Notable
institutional investors, including George Soros, Julian
Robertson and Allianz’s PIMCO in the fourth quarter of 2012 also
weighed down on sentiment.
Investors will scour the minutes from the latest policy
meeting of the U.S. Federal Reserve due on Wednesday for hints
on the central bank’s attitude to monetary stimulus, which has
been a key driver behind gold’s rally over the past two years.
Silver, which tends to be more volatile than gold,
fell 2 percent to $29.25 an ounce.
AMPLATS RESUMPTION PRESSURES PLATINUM
Platinum prices fell after platinum producer Anglo American
Platinum said operations at its South African mines
should resume on Wednesday.
Spot platinum fell 0.3 percent to $1,686.24 an ounce,
while palladium edged up 0.1 percent to $762 an ounce.
Year to date, platinum is outperforming gold after Amplats
said it planned to restructure its South African mines and to
cut 14,000 jobs.
Broker UBS cut its one-month platinum forecast to $1,650
from $1,720, anticipating potential downside risks to sentiment
surrounding the broad U.S. automatic spending cuts due in March.
Prices at 12:14 p.m. EST (1714 GMT)
LAST NET PCT YTD
CHG CHG CHG
US gold 1600.60 -8.90 -0.6% -4.5%
US silver 29.235 -0.614 -2.1% -3.3%
US platinum 1691.00 13.30 0.8% 9.9%
US palladium 763.70 10.55 1.4% 8.6%
Gold 1600.66 -8.89 -0.6% -4.4%
Silver 29.25 -0.59 -2.0% -3.5%
Platinum 1686.24 -5.76 -0.3% 9.7%
Palladium 762.00 1.00 0.1% 8.5%
Gold Fix 1607.75 -5.75 -0.4% -3.4%
Silver Fix 30.00 0.00 0.0% 0.2%
Platinum Fix 1685.00 10.00 0.6% 10.6%
Palladium Fix 763.00 3.00 0.4% 9.2%
(Additional reporting by Clara Denina in London; editing by
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