Gold Fell Most This Month as Housing Data Boosts Rate Concerns

PT. Equityworld Futures - Gold fell the most since April on speculation that an improving U.S. housing market will boost the case for the Federal Reserve to raise U.S. interest rates.

U.S. housing starts jumped to a seven-year high last month, government data showed Tuesday. The rise extended gains in the dollar, curbing bullion’s appeal as an alternative asset, after the European Central Bank said it will speed up bond buying. Gold has posted three straight monthly losses as the outlook for higher borrowing costs prompts investors to favor assets with better yield prospects, such as equities.

The metal dropped from a three-month high, with the rebound in housing signaling the economy may be strong enough for the Fed to start tightening this year. Minutes from the central bank’s latest meeting will be released Wednesday. Holdings in exchange-traded products backed by gold fell to the lowest since mid-January, data compiled by Bloomberg showed.

Gold futures for June delivery fell 1.7 percent to settle at $1,206.70 an ounce at 1:43 p.m. on the Comex in New York, the biggest drop for a most-active contract since April 30. On Monday, the precious metal climbed to $1,232, the highest since Feb. 17.

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Oil Trims Record Rally on Speculation $60 Crude to Sustain Glut

PT. Equityworld Futures - Oil pared its ninth weekly advance, the longest rally on record, amid speculation a rebound in prices to near $60 a barrel will sustain a market glut.

Futures slid as much as 0.5 percent in New York. Oil supply from OPEC and U.S. shale drillers is set to expand later this year, preventing further price increases, hedge fund manager Pierre Andurand said. Crude stockpiles in the U.S. are more than 100 million barrels above the five-year average for this time of the year and near the highest level since 1930, government data show.

Oil has rebounded from a six-year low in March amid signs U.S. output is slowing as drillers reduce the number of active rigs to the fewest since 2010. Oil prices are set to slide as their rally to the highest level this year threatens to prolong the global glut, according to Goldman Sachs Group Inc.

West Texas Intermediate for June delivery fell as much as 27 cents to $59.61 a barrel in electronic trading on the New York Mercantile Exchange, and was at $59.63 at 9:55 a.m. Seoul time. The contract fell 62 cents to $59.88 Thursday. Prices are up 0.5 percent this week and have climbed 12 percent in 2015.

Brent for July settlement was 13 cents lower at $66.57 a barrel on the London-based ICE Futures Europe exchange. The June contract expired on Thursday after dropping 22 cents, or 0.3 percent, to $66.59. Front-month prices are up 1.8 percent this week.


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Gold near 3-mth high; eyes weekly gain on U.S. rate expectations

PT. Equityworld Futures - SINGAPORE, May 15 Gold traded near a three-month high on Friday and was on track for its biggest weekly gain in four months on receding expectations the Federal Reserve would hike U.S. interest rates soon.
   
Spot gold was steady at $1,221.20 an ounce by 0031 GMT, after rising 0.5 percent on Thursday. Prices had climbed to $1,227.04 in the previous session, their highest since Feb. 17.

The metal is up nearly 3 percent this week, the biggest weekly gain since mid-January.

Recent U.S. data has supported market expectations that the economy is not strong enough for the Fed to start rising record-low rates from June.

The bullion market was getting comfort from Wednesday data that showed U.S. retail sales were flat in April, weaker than expected, as households cut back on purchases of automobiles and other big-ticket items.

That added to second-quarter growth concerns already prompted by sluggish U.S. nonfarm payrolls data last week.

Data on Thursday that showed the number of Americans filing new claims for unemployment benefits fell last week towards a 15-year low failed to alleviate concerns over the economy.

The dollar was trading close to four-month lows on Friday against a basket of major currencies, on speculation the U.S. central bank will not hike rate until later this year.

Higher rates would boost demand for the greenback, but diminish the appeal of non-interest-paying bullion.
  
Traders will be watching data for cues. U.S. data due Friday includes April industrial production and the University of Michigan's preliminary May reading on consumer sentiment.

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Gold Caps Biggest Weekly Rally Since January on Fed Rate Bets

PT. Equityworld Futures - Gold capped the biggest weekly rally since mid-January after an unexpected drop in U.S. consumer confidence revived speculation that the Federal Reserve will wait longer before raising interest rates.

Cooling U.S. expansion is a boon to gold because it’s traditionally sought as a haven during times of economic turmoil. A weaker outlook is more likely to push Fed officials to delay tightening, increasing the chances that inflation can rebound. Higher rates also cut bullion’s allure because the metal doesn’t pay interest, unlike competing assets such as new bonds.

Gold futures for June delivery rose less than 0.1 percent to settle at $1,225.30 an ounce at 1:40 p.m. on the Comex in New York. Prices climbed 2.9 percent this week, the most since Jan. 16.

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