Gold Retreat as Dollar Holds Advance Before ECB Policy Meeting

Gold retreated as the dollar traded near a five-year high before a European Central Bank meeting today that may give indications on further stimulus.

The Bloomberg Dollar Spot Index was little changed before data due tomorrow that™s forecast to show U.S. jobs growth and amid speculation ECB policy makers will signal more stimulus. President Mario Draghi said last month they are open to buying a wide variety of assets.

The greenback has strengthened as the Federal Reserve considers raising borrowing costs while other central banks take steps to spur growth. A stronger dollar and higher U.S. interest rates reduce gold™s allure because the metal generally offers investors returns only through price gains.

Gold for February delivery fell 0.5 percent to $1,202.20 an ounce by 7:18 a.m. on the Comex in New York. Bullion for immediate delivery declined 0.6 percent to $1,202.25 in London, according to Bloomberg generic pricing.

Source : Bloomberg

Dollar Probes 120 Yen on U.S. Growth as Euro Traders Await ECB

The dollar strengthened to within 0.1 percent of 120 yen, reaching the highest level since July 2007, as analysts forecast that U.S. job growth will accelerate, boosting the economy while Japan™s remains mired in recession.

While the U.S. currency is being buoyed by signs of strength in the American economy, the yen and the euro are weakening as their central banks expand stimulus measures to boost growth. Europe™s shared currency touched a two-year low today as traders awaited a monetary-policy decision from the European Central Bank. Australia™s dollar slid for a sixth day after Goldman Sachs Group Inc. forecast it would decline to 79 U.S. cents.

The dollar rose 0.1 percent to 119.93 yen at 12:10 p.m. London time, after rising to 119.98, the strongest level since July 2007. The U.S. currency was little changed at $1.2313 per euro after appreciating to $1.2296, the strongest since August 2012. The yen traded at 147.66 per euro.

About $3 billion in options contracts with strikes at 120 yen per dollar expire today, according to data compiled by Bloomberg, potentially limiting the decline of the Japanese currency. The greenback appreciated 14 percent against the yen this year as the Fed moved closer to raising interest rates while the Bank of Japan increased the scale of its bond purchases as recently as October.

Source : Bloomberg

Gold Retreats From Five-Week High on Outlook for Stronger Dollar

Gold retreated after the biggest one-day rally in more than a year as investors weighed the outlook for a stronger dollar against a rebound in oil prices. Silver, platinum and palladium dropped.

Bullion for immediate delivery declined as much as 0.7 percent to $1,203.45 an ounce, and traded at $1,205.47 at 8:55 a.m. in Singapore, according to Bloomberg generic pricing. The metal rallied yesterday to $1,221.43, the highest level since Oct. 30, after climbing from a three-week low of $1,142.88 as some investors ended bets on lower prices.

Gold advanced 3.8 percent yesterday, the most since Sept. 2013, as crude recovered from a five-year low and the Bloomberg Dollar Spot Index fell from the highest since 2009. The gauge of the U.S. currency remains 8.3 percent higher this year amid expectations that the Federal Reserve will start to raise interest rates next year, hurting gold™s allure. Assets in the SPDR Gold Trust, the largest exchange-traded product backed by the metal, shrank 10 percent in 2014 to a six-year low.

Gold dropped for a third month in November as the Fed assessed the timing of rate rises, while other central banks added to stimulus, strengthening the dollar. Policy makers at the European Central Bank and Bank of England meet Dec. 4.

Source: Bloomberg

Dollar Falls From 5-Year High on Speculation It Gained Too Fast

The dollar declined from the highest level in more than five years amid speculation the currency may have strengthened too much, too fast.

The greenback slipped versus most of its 16 major peers after a gauge of the Bloomberg Dollar Spot Index™s relative strength exceeded 70 on Nov. 28, a level some traders consider a signal an asset may reverse course. Russia™s ruble led a drop by some commodity-producing nations™ currencies as oil reached a five-year low. The yen gained after weakening to a seven-year low as Moody™s Investors Service cut Japan™s credit rating.

Bloomberg™s dollar index, which tracks the greenback against the currencies of 10 trading partners, sank 0.3 percent to 1,103.69 at 4:11 p.m. in New York. It closed on Nov. 28 at 1,106.90, the highest level since March 2009, as it gained for a sixth consecutive week.

The dollar fell 0.2 percent to 118.36 yen, after earlier touching 119.14 yen, the strongest since August 2007. The U.S. currency depreciated 0.2 percent to $1.2473 per euro. The 18-nation currency was little changed at 147.64 yen.

Source : Bloomberg