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PRECIOUS-Gold up for 2nd day as stock markets fall, dollar slips

Published 14/01/2016, 11:26 am
© Reuters. PRECIOUS-Gold up for 2nd day as stock markets fall, dollar slips
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SINGAPORE, Jan 14 (Reuters) - Gold rose for a second session on Thursday, recovering from a one-week low as pressure on global equity markets and weakness in the U.S. dollar underpinned the precious metal.

FUNDAMENTALS

* Spot gold XAU= gained 0.1 percent to $1,094.11 an ounce by 0007 GMT and U.S. gold futures GCcv1 gained 0.7 percent to $1,094.5.

* U.S. stocks sank on Wednesday, pushing the S&P 500 to a close below 1,900 for the first time since September as investors grew anxious about weak energy prices, U.S. corporate earnings and the global economy. .N

* Sentiment soured for the greenback, which retreated from a one-week high against a basket of major currencies as U.S. stocks fell. USD/

* The deepening slide in oil and concerns about China's economy have rattled equity markets, which have failed to sustain any significant rallies in early 2016.

* Chicago Federal Reserve Bank President Charles Evans said he was nervous about the potential effects of China's slowdown on the U.S. economy and about the possibility that inflation expectations may be slipping.

* The Fed raised U.S. interest rates in December and attention has shifted to how many increases will follow in 2016. Rate hikes typically lower demand for non-interest-paying gold while boosting the dollar.

* Among other precious metals, palladium XPD= fell 0.8 percent to $481.1 an ounce, silver XAG= was little changed at $14.136 an ounce, while platinum XPT= gave up 0.3 percent at $845.03.

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

MARKET NEWS

* U.S. stocks tumbled on Wednesday to their lowest close since September and oil prices gave up an early rally on mounting worries about the global economy.

* Brent crude ended 2 percent lower on Wednesday after falling below $30 a barrel for the first time since April 2004 as a growing stocks of oil in the United States stoked market fears about demand.

DATA AHEAD (GMT) 0700 Germany Wholesale price index Dec 0900 Germany GDP 2015 1330 U.S. Import prices Dec 1330 U.S. Export prices Dec 1330 U.S. Weekly jobless claims

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