Tags: gold | dollar | prices | metals

Gold Erases 2014 Losses as Equity, Dollar Declines Boost Demand

Tuesday, 30 Dec 2014 12:22 PM

Gold erased its 2014 losses as world equities dropped and the dollar headed for the first decline in three sessions, boosting demand for bullion as an alternative asset.

The metal also climbed as Greece is expected to hold early elections on Jan. 25 after Prime Minister Antonis Samaras failed to secure the necessary votes to hold office. The nation’s ongoing debt crisis poses a risk to Europe’s economy. Gold priced in euros climbed 13 percent this year.

“A weaker dollar, uncertainty in Greece’s political situation and a pullback in equities are all adding to support in gold,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in an e-mail.

Gold futures for February delivery rose 2 percent to $1,205.40 an ounce at 10:21 a.m. on the Comex in New York. A close at that level would leave prices up 0.3 percent this year.

The MSCI All-Country World Index of shares slid 0.5 percent, heading for the biggest loss in two weeks. The Bloomberg Dollar Spot Index fell as much as 0.5 percent.

“Gold is higher, helped by a weaker dollar,” Tai Wong, the director of commodity products trading at BMO Capital Markets Corp., said by telephone. “The dollar dipping against the yen has the attention of the biggest part of the market.”

The yen appreciated versus all of its 16 major peers except Brazil’s real as the Bank of Japan said it will increase the length of maturity of the government bonds it buys.

Bullion is heading for a quarterly loss as the dollar climbed to a five-year high this month and as Federal Reserve policy makers signaled they will raise interest rates in 2015.

Holdings in exchange-traded products backed by gold fell yesterday to the lowest since April 2009.

Silver futures for March delivery climbed 3.8 percent to $16.375 an ounce in New York, heading for a second gain in three sessions. Through Monday, prices fell 19 percent this year.


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Gold erased its 2014 losses as world equities dropped and the dollar headed for the first decline in three sessions, boosting demand for bullion as an alternative asset.The metal also climbed as Greece is expected to hold early elections on Jan. 25 after Prime Minister...
gold, dollar, prices, metals
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2014-22-30
Tuesday, 30 Dec 2014 12:22 PM
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