Gold rose for fourth straight session: Mangal Keshav
Gold rose for the fourth straight session on safe haven demand due to uncertainties in Europe ahead of a key election in Greece, expectation of stimulus from US Fed & poor economic data from across the globe.
Investors have remained ahead of an Italian debt auction later today and a Greek election on the weekend while concerns over Spain's finances and the euro zone's debt problems, are likely to weigh on the riskier assets.
Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,274.37 tons, as on June 12. Silver holdings of ishares silver trust, the largest ETF backed by the metal, increased to 9,696.23 tons, as on June 12.
In the euro zone, credit ratings agency Moody's Investors Service has cut its rating on Spanish government debt by three notches to Baa3 from A3, saying the newly approved euro zone plan to help Spain's banks would increase the country's debt burden. The dollar index, which measures the US unit against a basket of six major, slipped to 82.126 from 82.386.
Copper futures rose, as the dollar’s decline enhanced the appeal of the metal as an alternative investment while machinery orders topped estimates in Japan, the world’s fourth biggest consumer of the metal. Copper futures for July delivery closed slightly up at $3.3395 per pound on the COMEX of the New York Mercantile Exchange.
South Korea has bought a total of 3,000 tons of aluminum via tenders for arrival by August 31 and also reissued a tender to buy 500 tons of lead for arrival by September 18, after passing on the tender on June 12, as per the state-run Public Procurement Service.
Crude oil futures declined, ahead of an OPEC policy meeting, which expected to leave the group's production target unchanged, while weak economic data added further to the bearish sentiment.
US Crude oil inventories fell 191,000 barrels to 384.44mn barrels, Gasoline stocks fell 1.72mn barrels and distillate stocks fell 63,000 barrels, as per EIA report.
Natural gas futures dropped to a 7-week low on NYMEX, as forecasts of cooler weather would reduce demand for the fuel used at power plants. Natural gas inventories are expected to increase by 70-75bn cubic feet, actual data will be released by EIA later in the day.
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