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PRECIOUS-Gold dips as firmer oil prices boost equities

Published 2016-04-18, 08:55 p/m
PRECIOUS-Gold dips as firmer oil prices boost equities
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SINGAPORE, April 19 (Reuters) - Gold eased on Tuesday as
safe-haven bids retreated after oil prices steadied and equities
edged higher, while uncertainty over U.S. monetary policy also
weighed.

FUNDAMENTALS
* Spot gold XAU= had fallen 0.3 percent to $1,228.02 an
ounce by 0045 GMT, after dropping 0.2 percent overnight.
* Gold had gained early on Monday after oil prices and Asian
equities slid in the wake of oil producers' failure to agree on
a plan to curb output, but ended the day lower as crude
recovered.
* Oil prices edged up in early trading on Tuesday as an oil
worker strike in Kuwait cut huge amounts of crude out of the
supply chain.
* But analysts warned that the disruption would be
short-lived and that markets would soon refocus on a global
supply glut following the failure on Sunday by major exporters
to rein in oversupply.
* World stock markets rose on Monday and the Dow Jones
industrial average closed above 18,000 for the first time since
July. MKTS/GLOB
* Commodity currencies soared on Tuesday with the Australian
dollar hitting a 10-month high, while the yen, also seen as a
safe-haven, weakened broadly as a strong rebound in oil prices
boosted risk sentiment.
* Dovish comment from a U.S. Federal Reserve official did
not help gold. The Fed is set to hike interest rates more
rapidly than investors currently expect, Boston Fed President
Eric Rosengren said on Monday, again pushing back on what he
said was investors' too pessimistic view of the U.S. economy and
monetary policy.
* But New York Fed President William Dudley said U.S.
economic conditions are "mostly favourable" yet the Fed remains
cautious in raising interest rates because threats loom.

* The Fed raised rates modestly from near zero in December,
its first policy tightening in nearly a decade. While futures
markets imply no further hikes until December, economists polled
by Reuters see June as the most likely time for a second move.
Fed projections imply about two more hikes before year end.
* Gold had posted its best quarterly jump in nearly 30 years
on expectations the Fed will not be able to raise rates this
year.
* For the top stories on metals and other news, click
TOP/MTL or GOL

DATA AHEAD (GMT)
0900 Germany ZEW economic sentiment Apr
1230 U.S. Housing starts Mar
1230 U.S. Building permits Mar

PRICES AT 0045 GMT
Metal Last Change Pct chg

Spot gold 1228.02 -3.13 -0.25
Spot silver 16.175 -0.046 -0.28
Spot platinum 975.3 -0.2 -0.02
Spot palladium 563 -2 -0.35
Comex gold 1229.8 -5.2 -0.42
Comex silver 16.195 -0.058 -0.36

COMEX gold and silver contracts show the
most active months

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