PRECIOUS-Gold near one-month high on BOJ stimulus plan

Tue Jan 22, 2013 7:59pm EST

SINGAPORE, Jan 23 (Reuters) - Gold inched up on Wednesday,
holding near a one-month high hit in the previous session after
its appeal as an inflation hedge was bolstered when the Bank of
Japan announced aggressive monetary stimulus.
    The BOJ said it would switch to an open-ended commitment to
buying assets next year and double its inflation target to 2
percent, its most determined effort yet to end years of economic
stagnation. 
    
    FUNDAMENTALS
    * Spot gold had inched up 0.1 percent to $1,693.85 an
ounce by 0033 GMT, on course for a third straight session of
gains. It hit a one-month high of $1695.76 in the previous
session. 
    * U.S. gold was little changed at $1,694.
    * Spot silver traded nearly flat at $32.22 an ounce,
after seven sessions of gains, matching a similar run in August
2011. 
    * Gold could see record average highs this year and next,
but its 12-year long bull run may be reaching a plateau as gains
get smaller on expectations for monetary policy to stabilise in
the United States and other key economies, a Reuters poll
showed. 
    * India raised import tax on gold ores and dore bars to 5
percent from 2 percent on Tuesday, a day after it hiked tax on
gold imports to 6 percent, as New Delhi tries to curb demand in
the world's biggest bullion importer and rein in a record
current account deficit. 
    * U.S. home resales unexpectedly fell in December, but the
drop was not large enough to suggest the recovery in the housing
sector is running out of steam. 
    * Positive signs emerged in the U.S. debt ceiling talks, as
the White House welcomed gestures by Republican leaders in the
House of Representatives that they aim to pass a nearly
four-month extension of the borrowing limit. 
 
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    MARKET NEWS
    * Bank and commodity shares led the benchmark Standard &
Poor's 500 Index to a fresh five-year closing high on Tuesday on
hopes that the global economy continues to mend. 
    * The yen held firm on Wednesday, having posted its biggest
one-day gain in around eight months on the greenback as
investors cut bearish bets on the currency following the Bank of
Japan's latest move to spur the economy. 
    
    DATA/EVENTS
 1245 U.S.      ICSC weekly chain store sales                     
 1355 U.S.      Redbook weekly retail sales                       
 1400 U.S.      FHFA home price index         Nov                 
 1500 Euro zone Consumer confidence           Jan                 
 1500 Canada    BoC rate decision                                 
 
        
    PRICES
   
 Precious metals prices 0033 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1693.85    2.25   +0.13      1.15
  Spot Silver        32.22    0.03   +0.09      6.41
  Spot Platinum    1692.25   -1.13   -0.07     10.24
  Spot Palladium    725.75    1.75   +0.24      4.88
  COMEX GOLD FEB3  1694.00    0.80   +0.05      1.09         2778
  COMEX SILVER MAR3  32.25    0.07   +0.21      6.67          490
  Euro/Dollar       1.3314
  Dollar/Yen         88.59
  COMEX gold and silver contracts show the most active months  
 
 
 (Reporting by Rujun Shen; Editing by Joseph Radford)
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