Gold turned lower on Tuesday after rising to a 1-week high on bargain hunting in the previous session, while more gold outflows from exchange-traded funds summed up investors’ weakening confidence in the metal.
Investors await Chinese manufacturing data for further indications of the growth outlook for the world’s second-largest economy, which is also the second-largest consumer of gold after India.
* Gold fell USD 4.63 an ounce to USD 1,420.51 by 0021 GMT. The metal, which has slipped more than 15 percent this year, posted its biggest-ever daily loss in dollar terms last Monday, shocking investors who have used gold as protection against inflation and other market risks
* US gold futures for June delivery stood at USD 1,420.20 an ounce, down USD 1.00.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 1.63 percent to 1104.71 tonnes on Monday from 1123.06 tonnes on Friday. The holdings were at their lowest since early 2010.
* Australia’s Newcrest Mining NCM.AX, the world’s no. 3 gold producer, said on Tuesday it is reviewing its businesses related to higher cost production at a time of increased costs for the industry and a reduced gold price.
* Asian shares steadied on Tuesday, supported by overnight gains in global equities, but were capped ahead of China’s first economic report for the second quarter due later in the session.
* The US dollar was nursing a grudge in early Asian trade on Tuesday after another attempt at 100 yen failed due to options-related offers, but traders suspect it is only a matter of time before the psychological level is broken.
* Japan’s Nikkei average eased in early trade on Tuesday as the yen’s weakness paused, prompting investors to lock in some of the gains after the index hit a nearly five-year closing high in the previous session.