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PRECIOUS-Gold flat, Yellen's stimulus view seen supporting
November 15, 2013 / 11:11 AM / 4 years ago

PRECIOUS-Gold flat, Yellen's stimulus view seen supporting

* Bullion ends week unchanged after two-week decline
    * Paulson holds gold ETF stake in Q3, others cut
    * Dollar decline helps boost gold
    * Coming up: CFTC Commitments of Traders report later Friday


    By Frank Tang and Clara Denina 
    NEW YORK/LONDON, Nov 15 (Reuters) - Gold prices were little
changed on Friday, taking a breather after a two-day rise but
underpinned by expectations that the nominee to lead the Federal
Reserve, Janet Yellen, would  continue easy monetary policy in
that role.
    U.S. regulatory filings for the third quarter showing that
prominent Hedge fund Paulson & Co maintained its stake in SPDR
Gold Trust, the world's biggest gold-backed
exchange-traded fund, also supported prices, traders said.
    Bullion ended the week nearly flat after dropping sharply
over the last two weeks as strong October U.S. nonfarm payrolls
stirred fears that the Fed would taper its bond-buying stimulus
as early as December.
    However, Yellen told a Senate Committee on Thursday the
Fed's economic stimulus would continue, prompting gold
speculators to buy back their bearish bets for fear that bullion
prices will rise further.
    "Gold is rallying on the news but basically it's just
short-covering," said Thomas Vitiello, principal of Aurum
Options Strategies. "It's not necessarily bullish yet."
    Spot gold inched down 10 cents to $1,286.91 an ounce
by 1:57 p.m. EST (1857 GMT), after gaining nearly 1 percent in
each of the previous two sessions.
    U.S. Comex gold futures settled up $1.10 at
$1,287.40 an ounce, with trading volume on track to finish
sharply below its 250-day average, preliminary Reuters data
showed.
    A weaker dollar index against a basket of major currencies
also boosted gold buying. 
    The U.S. currency initially rose after data showed U.S.
manufacturing output rose for a third straight month in October,
suggesting a broadening in activity in a sector regaining
momentum after a slump early this year. 
    
    PAULSON KEEPS GOLD STAKE, OTHERS CUT
    Hedge fund Paulson & Co maintained its stake in SPDR Gold
Trust, the world's biggest gold-backed exchange-traded fund, in
the third quarter after slashing its holding by more than half
in the second quarter.
    Other money managers and pension funds continued to cut
their holdings, however, sparking fears that the exodus in gold
led by institutional investors in the first half would continue
as the economy improves. 
    Outflows from the SPDR fund have amounted to more than 450
tonnes this year, driving its holdings to the lowest level since
early 2009 at 865.71 tonnes. 
    Among other precious metals, silver was down 0.2
percent at $20.69 an ounce. Platinum fell 0.4 percent to
$1,437.74 an ounce, while palladium slipped 0.9 percent
to $729.72 an ounce.
    
 1:57 PM EST     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold DEC   1287.40   1.10   0.1  1279.60 1290.80   79,690
 US Silver DEC  20.727  0.005   0.0   20.550  20.820   26,134
 US Plat JAN   1438.90  -5.20  -0.4  1432.50 1457.50    7,509
 US Pall DEC    732.65  -7.15  -1.0   722.50  745.00    6,445
                                                              
 Gold          1286.91  -0.10   0.0  1280.85 1290.76         
 Silver         20.690 -0.050  -0.2   20.600  20.830
 Platinum      1437.74  -5.50  -0.4  1435.50 1455.25
 Palladium      729.72  -6.50  -0.9   725.77  742.25
                                                              
 TOTAL MARKET              VOLUME  30-D ATM VOLATILITY
                CURRENT   250D AVG   CURRENT     CHG
 US Gold         93,030   189,283     23.18   -1.01
 US Silver       33,350    58,610     35.14    1.70
 US Platinum      7,804     2,978     20.36    0.00
 US Palladium     8,191     5,806

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