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Gold Drop Further in Longest Losing Streak in Four Years

Precious metal knock down on Friday for a seventh straight session, in its greatest losing streak since March 2009 because the dollar strengthened and investors cut exposure to the gold fearing further drops and choosing equities instead.

Yellow metal has lost almost 6 percent of its value in the six sessions through Thursday as stocks added on the back of strong US economic statistics and on fears the Federal Reserve could end its bullion friendly bond buying program.

Spot gold was losing 0.34 percent at $1,380.91 per ounce by 0538 GMT, having plunge to a four-week low of $1,369.29 on Thursday as renewed liquidation in precious metal’s ETFs and a recent drop below the $1,400 per ounce level spooked investors.

The gold is down 17 percent for the year and is on track for its worst weekly turn down in a month. Holdings in SPDR Gold Trust, the world’s major gold-backed exchange-traded fund, knock down to their lowest in four years.

Traders and dealers said Physical demand was also quiet on Friday as consumers in the largest gold buyers, China and India, wait for prices to stabilize or fall further.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore said many people are waiting on the sidelines as they are expecting another fall.

Demand in India is being hurt by central bank curbs on gold imports. Limits on bank batch have hit supply and triggered a sharp jump in premiums.

Indian gold futures chop down 1.5 percent on Thursday, extending losses for a second straight session to their lowest level in almost a month in line with global markets.  Lan said buying in India had plunge considerably from Monday, which saw the celebration of Akshaya Tritiya, considered an auspicious day to buy metal.

Premiums for gold bars in Hong Kong the main supply of gold for China, strike record highs this week on supply constraints.

Yellow metal demand knock down 13 percent to a three year low of 963 tonnes in the first quarter because rising jewelery demand and strong appetite for coins and bars failed to offset a sharp fall in investment, the World Gold Council says.

SPDR said holdings knock down 0.55 percent to 1041.42 tonnes on Thursday, the weakest in four years.

US gold future for June delivery was down 0.52 percent at $1,379.70 per ounce.


Gold Rise to 1 Week High, Central Bank Purchases Hold up

Bullion climbed to its highest in more than a week on Thursday, enhanced by prospects of more central bank buying following a recent steep sell off in the gold, as a firmer euro also underpinned prices.

Turkey and Russia raised their gold reserves in March, the International Monetary Fund stated on Wednesday raising their holdings ahead of the spectacular plunge in prices this month that shocked ardent yellow metal investors and bulls.

Central bank purchases and surging physical demand helped precious metal bounce from a two year trough about $1,321 per ounce hit previous week. However daily outflows from exchange-traded funds, reflecting sagging investor confidence capped gains.

Gold reversed early losses and stood at $1,445.56 per ounce by 0621 GMT, climbed $14.76. It strike a high of $1,447.66 per ounce earlier in the session its loftiest since April 15 the day it posted its largest ever daily slump in dollar terms.

Bullion is torn between an increase in demand for jewellery and coins, and investors in ETFs cutting exposure because they became gradually more convinced the US Federal Reserve will look to end its bullion friendly bond buying programme by the end of 2013 or beginning of 2014.

Joyce Liu, an investment analyst at Phillip Futures in Singapore said if the price breaks above $1,447-$1,450 levels, there will be more upward momentum. If it does not we may see a further dip in precious metal prices.

Premiums for gold bars soared to multi year highs in Asia following a spate of physical buying ran down supplies, with dealers in top consumer India expecting a surge in imports this month.

Holdings of the greatest gold backed ETF, New York’s SPDR Gold Trust slump 0.38 percent on Wednesday from Tuesday, their lowest since late 2009.

Dealer in Singapore said strong physical buying in China is overflowing into Hong Kong. I heard if you have gold bars now people will buy them at $2.50 to $3.00 premiums.

US gold for June delivery climbed more than 1 percent to as high as $1,447.50, its largest since April 15, however some dealers cautioned the current rebound in cash and gold futures was far from sustainable.

Gold futures rise on Thursday in electronic trade, on track for a second consecutive proceed supported by strengthening physical demand for the gold and downbeat US economic figures.


Precious Gold Gives up Early Gainss, off 1-week high

Yellow metal reversed early gains on Tuesday, coming off a 1-week peak stroke in the previous session, because more outflows from gold exchange-traded funds known as ETFs summed up investors weakening confidence in the gold.

CIMB regional economist Song Seng Wun said that from a technical stand point, there are still downside risks to yellow metal prices. I suspect we have not actually seen the market turning around to be bullish in yellow metal prices just yet.

Investors were still thrashing their wounds following gold posted its greatest ever daily loss in dollar terms previous Monday in a brutal sell-off that surprised ardent precious metal investors and bulls.

However the recent sharp fall in prices and an uneven rebound has attracted buying interest in Asia, sending premiums for gold bars in Singapore to the greatest since 2008.

Gold smack a session high of $1,431.31 per ounce however gave up gains and stood at $1,416.26 by 0624 GMT, dropped $8.88.

Prices sank to about $1,321 on April 16, its lowest in more than 2 years. Precious metal has dropped around 15 percent this year.

US gold futures for June delivery stood at $1,415.40 per ounce, losing $5.80.

Physical buying persisted in Asia even though spot gold has bounce back more than $100 from previous week’s lows, keeping premiums for gold bars at multi month highs in Hong Kong and Singapore as supply also tightened for coins and other products.

Bullion has been caught in a tug-of-war among physical buyers seeking bargains and wary investors cutting exposure to the precious metal on nagging worries regarding central bank sales and prospects of easing inflation.

Singapore based dealer said that people are still buying yellow metal and India is coming in. However Thailand is slow as they are waiting for prices to come off again.

India, the world’s biggest gold consumer, celebrates Akshaya Tritiya, a key gold-buying festival coming month, as the wedding season will continue till early June. Indian parents give gold jewelery to their daughters at weddings as a custom.

Gold for June delivery knock down $5.30 or 0.4%, to $1,415.70 per ounce. In Asian trading, gold reached $1,426.40 per ounce, its highest level since April 12 according to FactSet data.



Gold Float Near 10 month low, US payroll Statistics in focus

Yellow metal stable on Friday however held near its lowest since May previous year as investors waited for key US jobs data for more clues on the health of the world’s biggest economy, as a plunge in ETF holdings dragged on prices.

Investors will scrutinise on Friday’s US employment statistics for more signals on the strength of that economy. A strong report could damage precious metal safe haven appeal, making it easier for the US Federal Reserve to end stimulus measures that have made some investors worry regarding inflation in the world’s greatest economy.

Strong employment statistics could prompt the US Federal Reserve to end its gold friendly bond buying programme earlier than predictable and dent bullion’s safe haven appeal as worries concerning inflation.

Yellow metal was little changed at $1,553.56 per ounce by 0033 GMT, still heading for a second week of turn down. It knock down to 1,539.74 on Thursday, its weakest in 10 months, because unprecedented monetary stimulus from the Bank of Japan and expectation’s for another European Central Bank rate cut failed to stem heavy selling.

US gold future for June delivery was at $1,553.70 per ounce, up $1.30.

Brian Lan, managing director of GoldSilver Central Pte Ltd said if the statistics turns out to be strong tonight from the US,investors will look to the stock markets because it appears more attractive, Gold’s course will really depend on the data released tonight.

China being absent from the physical market this week for a Thursday and Friday holiday has added to the overall weakness in metals.

Metals consultancy GFMS said bullion is gearing up for the start of a bear market cycle in 2014 following more than a decade of gains as consumer demand for jewellery, bars and coins turn down and central bank buying plateaus.

Gold future for June delivery knock down $2 or 0.1%, to $1,550.40 per ounce during Asian morning trading hours.