PRECIOUS-Gold ends up on dollar fall, breaks four-day drop

Wed Nov 13, 2013 2:59pm EST

Related Topics

* Bargain hunting, dollar fall rekindle gold buying
    * Gold pares gains late in NY session, equities rise
    * Market looks to comments by Fed's Yellen set for Thursday
    * Coming up: U.S. weekly initial jobless claims Thursday


    By Frank Tang and Clara Denina 
    NEW YORK/LONDON, Nov 13 (Reuters) - Gold prices eked out a
small gain on Wednesday to snap a four-day losing streak,
boosted by a drop in the dollar and bargain hunting with prices
near a one-month low.
    The precious metal trimmed some of its gains later in the
New York session as the 0.5 percent gain in the S&P 500 equities
index to an intraday high dented gold's safe-haven
appeal. A two-percent drop in copper prices also pressured gold.
  
    In the absence of U.S. economic data, bullion investors
awaited comments from Fed policymakers, including Chairman Ben
Bernanke, due to speak at 7:00 p.m. EST (0000 GMT), for clues on
the longevity of the Fed's stimulus.
    Bernanke's speech comes on the heels of divergent remarks by
several other Fed officials.
    Minneapolis Fed President Narayana Kocherlakota said Tuesday
monetary policy should remain accommodative, but Atlanta Fed
President Dennis Lockhart did not rule out a decision to taper
the bond-buying stimulus at the December policy meeting, though
he also said the Fed should keep policy very easy.
 
    The precious metal fell 1 percent in the previous session,
and lost nearly 4 percent in the past four days.
    "Gold's negative price reaction to the possibility of a
December Fed tapering indicates to us that the bullion market is
likely to remain sensitive to expectations for changes in
monetary policy," said James Steel, chief metals analyst at
HSBC.
    Spot gold gained 0.2 percent to $1,269.84 an ounce by
2:22 p.m.
    U.S. Comex gold futures for December delivery
underperformed spot gold, settling down $2.80 at $1,268.40 an
ounce. Trading volume was 20 percent below its 250-day average,
preliminary Reuters data showed.
    Investors now switch their focus to comments that Fed
Chairman nominee Janet Yellen will make at her U.S. Senate
confirmation hearing on Thursday, watching for any clues about
monetary policy.
    Silver dropped 1 percent at $20.49 an ounce after
dropping 3 percent in the previous session to a four-week low.
    In physical market news, the U.S. Mint's 2013 American Eagle
silver bullion coin sales on Tuesday rose to a record high,
highlighting retail investors' strong appetite for silver
physical products. 
    Silver prices should be underpinned by improving industrial
demand in 2014, but they will follow gold lower if the U.S.
Federal Reserve begins tapering its stimulus, a top analyst at
metals consultant Thomson Reuters GFMS said on Tuesday.
 
    Platinum was down 0.3 percent at $1,425.90 an ounce
and palladium fell 1 percent to $729.75 an ounce.
 2:22 PM EST     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold DEC   1268.40  -2.80  -0.2  1265.00 1279.80  116,141
 US Silver DEC  20.442 -0.336  -1.6   20.410  20.855   63,116
 US Plat JAN   1432.00  -7.60  -0.5  1428.30 1441.40    6,057
 US Pall DEC    735.45  -6.90  -0.9   730.05  743.15    5,853
                                                              
 Gold          1269.84   2.23   0.2  1266.31 1278.86         
 Silver         20.490 -0.210  -1.0   20.460  20.850
 Platinum      1425.90  -3.85  -0.3  1429.00 1438.50
 Palladium      729.75  -7.72  -1.0   732.75  741.25
                                                              
 TOTAL MARKET              VOLUME   30-D ATM VOLATILITY
                CURRENT   250D AVG   CURRENT     CHG
 US Gold        140,247    189,283     23.18   -1.01
 US Silver       89,163     58,610     35.14    1.70
 US Platinum      6,291     12,978     20.36    0.00
 US Palladium     8,265      5,806
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