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PRECIOUS-Gold near highest in 7-1/2 months on safe-haven demand

Published 10/02/2016, 11:54 am
Updated 10/02/2016, 12:00 pm
PRECIOUS-Gold near highest in 7-1/2 months on safe-haven demand
XAU/USD
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XAG/USD
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GC
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SI
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GLD
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SINGAPORE, Feb 10 (Reuters) - Gold was holding near a 7-1/2-month high on Wednesday as risk aversion sent investors to the safe-haven asset amid a tumble in global stock markets and concerns over the global economy.

FUNDAMENTALS

* Spot gold XAU= ticked up 0.2 percent to $1,190.81 an ounce by 0042 GMT. The metal had climbed to $1,200.60 on Monday, the highest since June 2015.

* U.S. gold futures GCcv1 eased 0.6 percent to $1,191.40 after recent gains. Spot silver XAG= rose 0.2 percent to $15.26 an ounce, not far from a three-month high of $15.46 reached on Monday.

* Bullion has recently rallied along with other safe-haven assets such as the Japanese yen and U.S. Treasuries.

* Equity markets were hit hard early in the week by worries about the health of the euro zone banking sector, with a very easy monetary policy seen crimping bank profits and consequently their ability to repay debt.

* Asian stocks dipped early on Wednesday amid banking sector concerns, while European shares plunged for a second straight day on Tuesday. MKTS/GLOB

* The dollar nursed losses around 3-1/2-month lows on Wednesday, pressured by the spectre of a global economic slowdown as European banks struggled to fend off growing doubts over their health and as oil prices slipped back. USD/

* A softer greenback makes dollar-denominated gold cheaper for foreign currency holders.

* The price rally in gold has hurt demand from physical buyers of the metal.

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.21 percent to 702.03 tonnes on Tuesday. GOL/ETF

* Gold prices in India slipped to a record discount as traders struggled to draw buyers. Dealers were offering a record discount of up to $25 an ounce. Markets will be eyeing Federal Reserve Chair Janet Yellen's address to the U.S. Congress later in the session for fresh cues. Investors will be looking for clues on the pace at which the U.S. central bank would be increasing interest rates.

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

PRICES AT 0042 GMT Metal

Last

Change Pct chg

Spot gold

1190.81

2.35

0.2 Spot silver

15.257

0.025

0.16 Spot platinum

931.4

-0.8

-0.09 Spot palladium

517.26

3.96

0.77 Comex gold

1191.4

-7.2

-0.6 Comex silver

15.28 -0.169

-1.09

COMEX gold and silver contracts show the most active months

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