MET­ALS

The Star Early Edition - - MARKETS -

GOLD stead­ied yes­ter­day, re­coup­ing early losses on the back of a re­treat in the dol­lar after data sug­gested US eco­nomic growth might be slow­ing in the fi­nal quar­ter.

In London, gold was fixed at $1 197.50 an ounce (R422 125 a kilo­gram) in the af­ter­noon, slip­ping $1.50 from Tues­day’s sec­ond fix­ing. Spot prices had slipped as low as $1 194.71 be­fore the eco­nomic data.

Re­cent strong US data has fu­elled talk that the Fed­eral Re­serve could soon raise in­ter­est rates, de­press­ing gold.

Re­ports re­leased yes­ter­day, how­ever, showed do­mes­tic per­sonal spend­ing grew less than fore­cast in Oc­to­ber, while US job­less claims rose to the high­est since Septem­ber and new or­ders for US-made cap­i­tal goods fell for a sec­ond month in Oc­to­ber.

“You have to won­der for how much longer US data can have such a big hold on gold,” Matthew Turner at Mac­quarie said. “We have had a lot of ups and downs in US data this year, but the Fed hasn’t ac­tu­ally changed its pol­icy.” – Reuters

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