Gold Set to Snap Five-week Rally on Strong US Data, Equities

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January 31, 2014 2:52 PM EST

Gold looked poised to post its first weekly drop in six weeks on Friday as strong U.S. economic growth boosted global equities and the dollar, hurting the metal's safe-haven appeal.


An employee shows gold bangles to a customer at a jewellery showroom in Mumbaim in November, 2013 (Reuters).

Bullion was also under pressure due to the absence of top buyer China, shut for the Lunar New Year holiday.

FUNDAMENTALS

* Spot gold was largely unchanged at $1,244.11 an ounce by 0015 GMT after a 2-percent overnight drop. It is down 2 percent for the week.

* U.S. gross domestic product grew at a 3.2 percent annual rate in the final three months of last year, the Commerce Department said on Thursday, in line with economist expectations.

* South Africa's AMCU union rejected a 9 percent wage offer on Thursday from leading platinum producers, prolonging a week of industrial action.

* South Africa's metalworkers union said it will down tools at a smelter of top platinum producer Anglo American Platinum (AMSJ.J) from Feb 5.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.60 tonnes to 793.16 tonnes on Thursday.

* Goldcorp Inc (G.TO) said Canada's antitrust watchdog has indicated it does not intend to challenge the gold miner's move to acquire its smaller rival Osisko Mining Corp (OSK.TO).

MARKET NEWS

* The dollar strengthened and global equity markets rebounded on Thursday after data showed the U.S. economy grew strongly in the last quarter of 2013.

(Photo: / )
An employee shows gold bangles to a customer at a jewellery showroom in Mumbaim in November, 2013 (Reuters).
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