January 17, 2014 / 12:15 PM / 6 years ago

PRECIOUS-Gold up 4th straight week, Deutsche quits gold price-setting

* Gold up Friday on physical demand, ignores strong dollar
    * Deutsche Bank pulls out of gold, silver fix
    * South Africa's union votes in favour of wage strike
    * US markets shut on Martin Luther King Jr day Monday

 (Adds comment, second byline, dateline, updates market
    By Frank Tang and Clara Denina 
    NEW YORK/LONDON, Jan 17 (Reuters) - Gold rose on Friday as
weakness in U.S. equities, strong fund buying and Asian physical
demand lifted bullion to its fourth consecutive weekly gain.
    The market was surprised by news of Deustche Bank 
withdrawing from gold and silver benchmark setting, or fixing,
as German regulators investigate suspected manipulation of
precious metals prices by banks. 
    Deutsche, one of five banks involved in the twice-daily gold
fix for global price setting, said Friday it was dropping out of
the process after withdrawing from the bulk of its commodities
    Gold's recent rise has been supported by a drop in equities
early in 2014 following a record run-up in stocks last year.
However, analysts said that a rising interest-rate environment
and a better economic outlook could pressure gold.
    "In the long run, we are likely to see selloffs in gold
especially with more Fed tapering later this year," said Thomas
Capalbo, a precious metals trader at Newedge, a brokerage in New
    Spot gold, which fell initially, climbed 0.8 percent
to $1,252.11 an ounce by 2:45 p.m. EST (1945 GMT).
    For the week, it was up 0.5 percent, extending its weekly
winning streak to four - its longest rise since September 2012.
    U.S. gold futures for February delivery settled up
$11.70 at $1,251.90 an ounce, with trading volume about 40
percent below its 250-day average, preliminary Reuters data
    Gold rose on Friday against the headwinds of a stronger
dollar after fresh U.S. data supported the view the world's
largest economy is improving enough to keep the Federal
Reserve's stimulus-reducing measures on track. 
    Data showed U.S. industrial output rose at its fastest clip
in 3-1/2 years in the fourth quarter as factory activity closed
out the year on a strong note, a sign of the economy's
brightening prospects. 

    In China, physical gold premiums on the
Shanghai Gold Exchange rose on Friday. Buying from China, the
world's biggest gold consumer, has been robust in recent weeks
ahead of the Lunar New Year holiday on Jan. 31.
    Among other precious metals, silver rose 1.2 percent
to $20.29 an ounce.
    Platinum group metals were supported by supply worries as
members of the South Africa's Association of Mineworkers and
Construction Union voted in favour of a strike over wages at the
world's third-biggest platinum producer Lonmin.
    Platinum gained 1.7 percent to $1,448.99 an ounce,
while palladium was up 0.5 percent to $743.50 an ounce.
 2:45 PM EST     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold FEB   1251.90  11.70   0.9  1237.30 1254.60  103,818
 US Silver MAR  20.304  0.250   1.2   19.960  20.425   30,243
 US Plat APR   1454.10  22.60   1.6  1431.50 1457.90   11,389
 US Pall MAR    748.55   4.65   0.6   741.50  753.30    3,592
 Gold          1252.11  10.02   0.8  1238.10 1254.80         
 Silver         20.290  0.240   1.2   19.990  20.410
 Platinum      1448.99  23.74   1.7  1433.50 1453.25
 Palladium      743.50   3.75   0.5   743.20  750.75
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        114,740   134,466   187,532     16.52   -1.00
 US Silver       33,619    38,829    57,339     24.63   -0.24
 US Platinum     11,888    13,249    12,692     14.36   -0.87
 US Palladium     3,780     3,053     5,844     16.33   -0.55

 (Additional reporting by A. Ananthalakshmi in Singapore;
editing by William Hardy, David Evans and Meredith Mazzilli)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below