Tags: PRECIOUS-Gold Eases as Investors Cash in Gains Equities | Dollar Underpin

Gold Eases as Investors Cash in Gains; Equities, Dollar Underpin

Thursday, 14 Jan 2016 09:23 AM



Gold is poised to surge to $1,400 an ounce, according to famed money manager Jeff Gundlach, the CEO of big bond house DoubleLine Capital, putting the precious metal 30 percent higher from its current price of $1,090.

Gundlach thinks gold recently hit a bottom. It's been rallying since the beginning of the year as investors look for safe havens in the stock market sell-off, CNN Money explained.

Gundlach was one of the first to predict the sharp oil price crash in the fall of 2014 and then the junk bond turbulence of 2015.

He also says the United States is in a "stealth bear market" where many stocks are actually down 20% from their peaks. Stealth bear markets are usually followed by "full-on bear markets," he said.

http://money.cnn.com/2016/01/13/investing/gold-prices-jeff-gundlanch/



* Gold dips after last session's gain of 0.6 pct

* Focus on falling equity markets, currencies

* GRAPHIC-Commodities in 2016:http://link.reuters.com/reb25t (Updates prices, adds comment)

By Jan Harvey

LONDON, Jan 14 (Reuters) - Gold eased on Thursday as buyers cashed in some of the previous session's gains, but the metal remained underpinned by positive pressure from a drop in stock markets and dollar weakness.

Stocks fell in Europe and Asia on Thursday following steep losses on Wall Street, after volatility in Chinese stocks early in the year battered appetite for risk.

That helped send gold prices to two-month highs at $1,112 last week, but gold trading has since been choppy.

Spot gold was down 0.5 percent at $1,087.41 an ounce at 1249 GMT, while U.S. gold futures for February delivery were up 50 cents an ounce at $1,087.60.

"Gold should be much, much higher, but there seems to be some kind of selling which is hanging in there around $1,093-85, which is stopping it from going higher," Afshin Nabavi, head of trading at MKS, said.

"A little bit of it may be producer selling because they don't want to be caught lower... (and) it could very well be profit taking."

Benchmark Brent crude futures recovered to rise 1.6 percent after earlier sliding to their lowest since February 2004 as the prospect of more oil supplies from Iran added to gloom over oversupply and concerns about global economic growth.

Falling oil prices have helped depress longer-term inflation expectations, strength in which can lift gold prices.

Chicago Federal Reserve Bank President Charles Evans said he was nervous about the potential effects of China's slowdown on the U.S. economy and about the possibility that inflation expectations may be slipping.

The Fed raised U.S. interest rates in December and attention has shifted to how many increases will follow in 2016. Rate hikes typically lower demand for non-interest-paying gold while boosting the dollar.

"We are still somewhat stuck for the time being, with not enough interest or buying to conclusively hold above $1,100, but with few participants wanting to aggressively short the market in the light of current conditions in the stock markets and China," Marex Spectron said in a note.

"So for the short term, I would look to trade a 1080/1100 range in the absence of any outside news or influences."

The world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, reported a 2.4 tonne rise in its holdings on Wednesday, bringing its total inflow for the year to 11.7 tonnes.

In other precious metals, palladium was down 1 percent at $480.30 an ounce, silver was down 1 percent at $13.97 an ounce, and platinum was down 1.3 percent at $836.75. (Additional reporting by Naveen Thukral in Singapore; editing by Susan Thomas and Jason Neely)

© 2017 Thomson/Reuters. All rights reserved.

 
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Gold is poised to surge to $1,400 an ounce, according to famed money manager Jeff Gundlach, the CEO of big bond house DoubleLine Capital, putting the precious metal 30 percent higher from its current price of $1,090. Gundlach thinks gold recently hit a bottom. It's been...
PRECIOUS-Gold Eases as Investors Cash in Gains Equities, Dollar Underpin
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2016-23-14
Thursday, 14 Jan 2016 09:23 AM
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