SINGAPORE, Jan 5 (Reuters) - Gold added to an overnight
surge in prices on Tuesday, as escalating geopolitical tensions
in the Middle East and a global stock market rout triggered
safe-haven bids for the metal.
FUNDAMENTALS
* Spot gold XAU= rose 0.1 percent to $1,075.70 an ounce by
0044 GMT. On Monday, the metal had jumped as much as 2.2 percent
to a four-week high of $1,083.30, before ending the day up 1.3
percent.
* Saudi Arabia widened its rift with Iran on Monday, saying
it would end air traffic and trade links with the Islamic
republic and demanding that Tehran must "act like a normal
country" before it would restore severed diplomatic relations.
* Saudi Arabia executed Shi'ite Muslim cleric Nimr al-Nimr
on Saturday, provoking protests among Shi'ites across the
region. Iranian protesters stormed the Saudi embassy in Tehran,
setting fires and causing damage, prompting Riyadh to cut ties
and inflaming an already heated rivalry.
* Also supporting gold was the tumble in global equities. A
7 percent slide in Chinese shares on Monday sparked by weak
economic data rekindled worries over global growth on the first
day of trading in 2016, and sent European and U.S. stocks
diving. MKTS/GLOB
* Bullion, often seen as a alternative investment during
times of geopolitical and financial uncertainties, benefited
from the risk-averse sentiment along with the Japanese yen and
U.S. bonds.
* Gold prices, however, gave up some gains as oil prices
turned negative after earlier climbing on Saudi Arabia-Iran
tensions. O/R
* Safe-haven rallies tend to be short-lived and gold could
see the focus shift back to U.S. monetary policy soon.
* Gold slid 10 percent last year on fears higher U.S. rates
would lower demand for the non-interest-paying asset.
* San Francisco Federal Reserve President John Williams said
Monday he is unfazed by the weak economic data out of China that
has spooked Wall Street, and sees three to five U.S. interest
rate hikes this year as reasonable given the strength of the
U.S. economy.
* Hedge funds and money managers boosted their net short
position in COMEX gold to a fresh record in the week to Dec. 29,
U.S. government data showed on Monday.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian share markets were on the ropes for a second
straight session early Tuesday as investors anxiously waited to
see if Beijing can head off the latest selling stampede in
Chinese stocks.
PRICES AT 0044 GMT
Metal Last Change Pct chg
Spot gold 1075.7 1.4 0.13
Spot silver 13.905 0.055 0.4
Spot platinum 885.4 2.1 0.24
Spot palladium 540.5 1.4 0.26
Comex gold 1075.4 0.2 0.02
Comex silver 13.89 0.049 0.35
COMEX gold and silver contracts show the
most active months
surge in prices on Tuesday, as escalating geopolitical tensions
in the Middle East and a global stock market rout triggered
safe-haven bids for the metal.
FUNDAMENTALS
* Spot gold XAU= rose 0.1 percent to $1,075.70 an ounce by
0044 GMT. On Monday, the metal had jumped as much as 2.2 percent
to a four-week high of $1,083.30, before ending the day up 1.3
percent.
* Saudi Arabia widened its rift with Iran on Monday, saying
it would end air traffic and trade links with the Islamic
republic and demanding that Tehran must "act like a normal
country" before it would restore severed diplomatic relations.
* Saudi Arabia executed Shi'ite Muslim cleric Nimr al-Nimr
on Saturday, provoking protests among Shi'ites across the
region. Iranian protesters stormed the Saudi embassy in Tehran,
setting fires and causing damage, prompting Riyadh to cut ties
and inflaming an already heated rivalry.
* Also supporting gold was the tumble in global equities. A
7 percent slide in Chinese shares on Monday sparked by weak
economic data rekindled worries over global growth on the first
day of trading in 2016, and sent European and U.S. stocks
diving. MKTS/GLOB
* Bullion, often seen as a alternative investment during
times of geopolitical and financial uncertainties, benefited
from the risk-averse sentiment along with the Japanese yen and
U.S. bonds.
* Gold prices, however, gave up some gains as oil prices
turned negative after earlier climbing on Saudi Arabia-Iran
tensions. O/R
* Safe-haven rallies tend to be short-lived and gold could
see the focus shift back to U.S. monetary policy soon.
* Gold slid 10 percent last year on fears higher U.S. rates
would lower demand for the non-interest-paying asset.
* San Francisco Federal Reserve President John Williams said
Monday he is unfazed by the weak economic data out of China that
has spooked Wall Street, and sees three to five U.S. interest
rate hikes this year as reasonable given the strength of the
U.S. economy.
* Hedge funds and money managers boosted their net short
position in COMEX gold to a fresh record in the week to Dec. 29,
U.S. government data showed on Monday.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian share markets were on the ropes for a second
straight session early Tuesday as investors anxiously waited to
see if Beijing can head off the latest selling stampede in
Chinese stocks.
PRICES AT 0044 GMT
Metal Last Change Pct chg
Spot gold 1075.7 1.4 0.13
Spot silver 13.905 0.055 0.4
Spot platinum 885.4 2.1 0.24
Spot palladium 540.5 1.4 0.26
Comex gold 1075.4 0.2 0.02
Comex silver 13.89 0.049 0.35
COMEX gold and silver contracts show the
most active months