SINGAPORE (Reuters) - Gold edged down on Wednesday, off a two-week high hit in theprevious session as upbeat U.S. manufacturing data soothed worriesabout the economy and dampened hopes of more monetary easing. After a recent run of weak data, the Institute for SupplyManagement said that U.S. manufacturing grew in April at thefastest pace in 10 months, easing concerns the economy had lostmomentum at the start of the second quarter. Stronger economic growth will lessen the need for the U.S. FederalReserve to ease monetary policy, and dent investor appetite inbullion which benefits from low real interest rates. Investors are shifting their focus to the U.S. non-farm payrollsdata due Friday, and closely watching the European Central Bankrate decision Thursday as well as weekend elections in France andGreece. "Gold will probably be sitting in limbo for a few more days," saidNick Trevethan, senior metals strategist at ANZ in Singapore, "Itis rather inversely sensitive to positive numbers, as evidenced bythe ISM number overnight." He added that the weaker Australian dollar as a result of asurprise rate cut by the Reserve Bank of Australia on Tuesdaytriggered some selling by producers, as gold in Aussie dollar termsrose to a three-week high. Spot gold edged down 0.2 percent to $1,659.06 an ounce by 0317 GMT,after rising to $1,671.20 in on Tuesday. U.S. gold lost 0.1 percent to $1,660.2. SPDR Gold Trust, the world's biggest gold-backed exchange-tradedfund, said its holdings fell for a second straight day to athree-month low of 1,274.09 tonnes by May 1. "Investors are standing on the sidelines of the market, waiting forthe uncertainty around U.S. economy, euro zone and QE3 (third roundof quantitative easing by the Fed) to clear up," said a HongKong-based dealer. Holdings in the iShares Silver Trust, the world's biggest silverETF, were stagnant, unchanged since April 20 at 9,552.14 tonnes byMay 1. Spot silver fell 0.3 percent to $30.86 an ounce. (Editing by Sugita Katyal) Thomson Reuters 2012 All rights reserved SUBSCRIBE to Mineweb.com's free daily newsletter now. The e-commerce company in China offers quality products such as Beverage Mixer , Labeling Machines Manufacturer, and more. For more , please visit Carbonated Soft Drink Filling Machine today!
Related Articles -
Beverage Mixer, Labeling Machines Manufacturer,
|