SINGAPORE, Sept 23 (Reuters) - Gold extended gains on
Wednesday, moving closer to an 18-month high struck last week
as investors sought a safe haven after the U.S. dollar tumbled
to its weakest in a year against the euro.
FUNDAMENTALS
* Spot gold <XAU=> was quoted at $1,016.35 an ounce, up
$2.55 from New York's notional close and within striking
distance of an 18-month high of $1,023.85 hit on Thursday, with
a rally in oil also igniting buying interest.
* The dollar hit a one-year trough against the euro as
hopes for global recovery prompted investors to shift money to
higher-yielding currencies. The euro hit a high of $1.4843
<EUR=> on trading platform EBS, its highest since September
2008. []
* Dealers sold off the dollar on views the U.S. Federal
Reserve will signal plans to maintain loose monetary policy
well into 2010. The weaker dollar makes commodities cheaper for
buyers holding other currencies.
* U.S. gold futures for December delivery <GCZ9> added
$2.50 an ounce at $1,018.00 on the COMEX division of the New
York Mercantile Exchange.
* Oil prices jumped more than 2 percent to top $71 a barrel
on Tuesday as the U.S. dollar fell to a one-year low against
the euro and top exporter Saudi Arabia said the economy was
rebounding. []
* The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,101.735
tonnes as of Sept 22, unchanged from the previous day.
<XAUEXT-NYS-TT> []
MARKET NEWS
* U.S. stocks rose on Tuesday as investors bet the U.S.
Federal Reserve would stick to its accommodative policy to
foster economic recovery, boosting growth-sensitive sectors
such as financials, technology and industrials. []
* Asian stocks are set to rise on Wednesday, as markets
gained on the belief policy makers would continue to support
stimulus measures to promote economic growth. []
* India's gold purchases picked up as the festive season
gained steam in the world's largest consumer, but the physical
market also saw sales of scraps after prices bounced from a
1-week low. []
* Oil, copper and cocoa prices rallied about 3 percent each
on Tuesday as the dollar tumbled, driving the Reuters-Jefferies
CRB index <.CRB>, which tracks 19 mostly-U.S. traded commodity
markets, up nearly 2 percent. []
DATA EVENTS
* The following data is expected on Wednesday: <ECON>
(GMT):
- FOMC rate decision N/A
- French consumer spending for August - 0645
- Euro zone flash PMI estimates, September - 0758
- BOE minutes from September meeting - 0830
- Weekly U.S. mortgage market index - 1100
- Markets in Japan are closed for a holiday
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PRICES
Precious metals prices at 0029 GMT
Metal Last Change Pct chg Day ago pct MA 30
RSI Spot gold $1016.35 $2.55 +0.25% +13.31% $860.10
67
Spot silver $17.14 $0.04 +0.23% +43.07% $11.29
69
Spot plat $1335.50 $3.50 +0.26% +40.73% $948.98
66
COMEX gold $1019.00 $130.80 +14.73% +13.29% $857.64
67
Currencies
Euro/dlr $1.480 $0.167 +12.69% +12.34%
Dlr/yen 90.81 0.43 +0.48% +2.13%
(Reporting by Lewa Pardomuan; Editing by Clarence Fernandez)
