PRECIOUS-Gold firms after three days of losses as stocks drop

Published 2016-05-04, 09:06 p/m
PRECIOUS-Gold firms after three days of losses as stocks drop
XAU/USD
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XAG/USD
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GC
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SI
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SINGAPORE, May 5 (Reuters) - Gold firmed after three days of
losses on Thursday on weaker global equities, but held below a
15-month peak as the dollar rebounded against the yen after a
recent slump.

FUNDAMENTALS
* Spot gold XAU= ticked up 0.2 percent to $1,281.06 an
ounce by 0059 GMT, after losing 1.1 percent in the past three
sessions. U.S. gold futures GCcv1 rose 0.7 percent to
$1,283.10.
* Asian shares slipped for a seventh straight session on
Thursday as a mixed batch of U.S. economic data did nothing to
assuage concerns about global growth and deflation, keeping
sovereign bonds well supported. Global equity markets fell for a
second straight day on Wednesday. MKTS/GLOB
* Data on Wednesday showed that the U.S. services sector
expanded in April as new orders and employment accelerated,
bolstering views that economic growth would rebound after almost
stalling in the first quarter.
* But the U.S. growth outlook was dimmed by another report
on Wednesday showing private employers hired the fewest number
of workers in three years in April.
* The dollar, which had dropped to a 15-month low early in
the week, rose on Wednesday, supported by data on U.S. trade and
factory orders.
* It extended those gains early on Thursday, limiting gold's
rise.
* The dollar had slumped to a near 19-month low versus the
yen earlier in the week, boosting gold to a 15-month top of
$1,303.60 on Monday.
* U.S. interest rates futures rose on Wednesday as the
weaker-than-expected U.S. private jobs growth in April caused
traders to price in lower chances the Federal Reserve will raise
interest rates at its June policy meeting.
* Gold is sensitive to interest rates and returns on other
assets as rising rates lift the opportunity cost of holding
non-yielding bullion.
* It has risen 21 percent this year as expectations faded
that the Fed would push ahead with interest rate hikes.
* Elsewhere, assets in SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, rose 0.07 percent to 825.54
tonnes on Wednesday, their highest in over two years. GOL/ETF

* For the top stories on metals and other news, click
TOP/MTL or GOL

DATA AHEAD (GMT)
0145 China Caixin services PMI Apr
1230 U.S. Weekly jobless claims

PRICES AT 0059 GMT
Metal Last Change Pct chg

Spot gold 1281.06 1.95 0.15
Spot silver 17.419 0.055 0.32
Spot platinum 1058.96 4.18 0.4
Spot palladium 599.72 3.72 0.62
Comex gold 1283.1 8.7 0.68
Comex silver 17.46 0.159 0.92

COMEX gold and silver contracts show the most
active months

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