Gold eased on Friday but notched its biggest weekly advance in nearly two years as fears of an imminent winding down of the US Federal Reserve’s monetary stimulus eased for now.
Spot bullion rose 4.8 percent for the week, the biggest weekly gain since October 2011. The metal rallied after Fed Chairman Ben Bernanke on Wednesday said the US central bank needed to keep an stimulative monetary policy in place given low inflation and an uncertain job market.
Signs of some physical supply tightness in gold, as reflected by high premiums and record volume in the Shanghai Futures Exchange and a surge in gold lease rates, helped to limit bullion’s losses on Friday.
Analysts said, however, recent gains in US equities amid some positives signs for the economy and no indications of abatement in outflows from gold-backed exchange-traded funds could pressure the metal.
“The fact that the leading US equity indices closed at record highs yesterday - which could prompt investors to switch once again from gold ETFs to equities - is problematic for gold,” said Eugen Weinberg, head of commodity research at Commerzbank.
courtesy of thenews.com.pk
Spot bullion rose 4.8 percent for the week, the biggest weekly gain since October 2011. The metal rallied after Fed Chairman Ben Bernanke on Wednesday said the US central bank needed to keep an stimulative monetary policy in place given low inflation and an uncertain job market.
Signs of some physical supply tightness in gold, as reflected by high premiums and record volume in the Shanghai Futures Exchange and a surge in gold lease rates, helped to limit bullion’s losses on Friday.
Analysts said, however, recent gains in US equities amid some positives signs for the economy and no indications of abatement in outflows from gold-backed exchange-traded funds could pressure the metal.
“The fact that the leading US equity indices closed at record highs yesterday - which could prompt investors to switch once again from gold ETFs to equities - is problematic for gold,” said Eugen Weinberg, head of commodity research at Commerzbank.
courtesy of thenews.com.pk
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