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PRECIOUS-Gold holds near 7-1/2-month peak as equities tumble

Published 09/02/2016, 12:01 pm
Updated 09/02/2016, 12:10 pm
PRECIOUS-Gold holds near 7-1/2-month peak as equities tumble
XAU/USD
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NCM
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GC
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MANILA, Feb 9 (Reuters) - Gold stayed near its highest since June at close to $1,200 an ounce on Tuesday, buoyed by uncertainty over global growth that has kept stock markets under immense selling pressure.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,191.10 an ounce by 0037 GMT. The metal, which thrives on instability in markets elsewhere, rose as high as $1,200.60 on Monday, its strongest since June 22 last year.

* Bullion gained 5 percent last week, its biggest such increase since July 2013, boosting gold bull expectations that the price can go higher as global headwinds could make it tough for the U.S. Federal Reserve to raise interest rates this year.

* U.S. gold for April delivery GCcv1 was off 0.4 percent at $1,192.70 an ounce.

* Economic uncertainty, a weak dollar and falling expectations for U.S. interest rate hikes have spurred the biggest buying spree of gold exchange-traded-funds in nearly five years. An increasingly important gauge of U.S. inflation tumbled last month to its lowest level since the New York Fed began the survey in mid-2013, in what could be taken as another warning bell for the U.S. central bank. Sentiment in the euro zone deteriorated more than expected in February as concern about the global economy prompted investors to pare back their expectations to the lowest level since November 2014, a survey showed. Newcrest Mining NCM.AX suspended all mining and processing at its Gosowong operation in Indonesia after the underground section of the gold mine was damaged by a cave-in late on Monday, which trapped one of its workers. For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* Asian stocks were scorched as stability concerns put a torch to European bank stocks and sent investors stampeding to only the safest of safe haven assets. MKTS/GLOB

* The yen held at its highest in over a year against the dollar, having soared broadly as a selloff in European and U.S. stocks stoked demand for the safe-haven currency. USD/

DATA AHEAD (GMT)

0700 Germany

Industrial output

Dec

0700 Germany

Trade data

Dec

1100 U.S.

NFIB business optimism

Jan

1500 U.S.

JOLTS job openings

Dec

1500 U.S.

Wholesale inventories

Dec

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