Gold Steadies after Volatile Trade; Near Four-month High
February 27, 2014 3:07 PM EST
Gold was becalmed on Thursday after a roller coaster trade in the previous session, with dealers expecting physical demand to resurface after prices dropped from their strongest level since October last year.
People look at gold jewellery at a jewellery shop at the Grand Bazaar in Istanbul on 5 December, 2013 (Reuters).
* Spot gold was little changed at $1,330.00 an ounce by 0031 GMT. On Wednesday, it hit a four-month high at $1,345.35 before falling almost 1 percent on a dollar rally and surging U.S. home sales -- its biggest one-day loss in nearly a month.
* U.S. gold was at $1,330.10 an ounce, up $2.10.
* Sales of new U.S. single-family homes surged to a 5-1/2-year high in January, but the bounce was likely to be short-lived amid signs of a broader weakness in the housing market.
* Holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust GLD increased 0.26 percent on Tuesday from Monday.
* A new burst of investment in commodities after a hellish 2013 is expected to fizzle out in coming months, with investors alert to the fickle nature of rallies across basic resources such as gold and agriculture.
* Asian shares got off to a shaky start on Thursday as emerging markets were rattled by escalating tensions in Ukraine, sending investors scurrying to the safety of the dollar and U.S. Treasuries.
* U.S. crude oil dipped early on Thursday after rising the previous day when the contract was supported by a surprisingly small build in crude inventories.