Gold Nudges up but Still Near Seven-week Low on Strong US Data

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April 2, 2014 3:06 PM EST

Gold steadied on Wednesday after two days of losses but the precious metal continued to stay near its lowest in seven weeks as strong U.S. factory data boosted optimism about economic growth, diminishing bullion's safe-haven appeal.


A saleswoman arranges a gold necklace inside a jewellery showroom in the southern Indian city of Kochi in this April 16, 2013 file photo. Battling a huge trade deficit and a weak currency, the government has taken various steps this year to make it harder and more expensive for Indians to get hold of gold, the biggest item on the country's import bill after oil. REUTERS/Sivaram V/Files (INDIA - Tags: BUSINESS)

FUNDAMENTALS

* Spot gold edged up 0.1 percent to $1,280.39 an ounce by 0022 GMT, not far from its seven-week low of $1,277.29.

* U.S. factory activity accelerated for a second straight month in March and auto sales surged, the latest signs the economy was regaining footing after a brutal winter.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 2.10 tonnes to 810.98 tonnes on Tuesday.

* Anglo American Platinum (AMSJ.J) has sent force majeure notices to some of the suppliers to its South African mines, the world's top platinum producer said, underscoring the widening economic impact of an almost 10-week-old strike.

* Deutsche Bank raised its 2014 gold price forecast to $1,261 and silver price forecast to $20 per ounce.

MARKET NEWS

* Asian share markets were looking to extend their recent rally on Wednesday as investors chose to accentuate the positive in a mixed bag of global economic data, pressuring safe havens such as the yen and government bonds.

(Photo: / )
A saleswoman arranges a gold necklace inside a jewellery showroom in the southern Indian city of Kochi in this April 16, 2013 file photo. Battling a huge trade deficit and a weak currency, the government has taken various steps this year to make it harder and more expensive for Indians to get hold of gold, the biggest item on the country's import bill after oil. REUTERS/Sivaram V/Files (INDIA - Tags: BUSINESS)
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