الرئيسية
(Updates prices, adds quotes)
* Funding stress weighs on gold prices
* Gold on course for 7 percent weekly loss
* Fears of industrial decline may hit platinum, palladium
LONDON, Dec 16 (Reuters) - Gold rallied on Friday
after a sharp pullback in the four previous sessions, gaining
support from a weaker dollar, but the metal remained headed for
its biggest weekly fall in almost three months.
Spot gold rallied as much as 1.96 percent to
$1,600.49 per ounce and then traded at $1,585.99 by 1432 GMT,
off a 2-1/2-month low of 1,560.36 hit in the previous session.
U.S. gold rose about 1 percent to $1,588.40 per
ounce.
A slightly weaker dollar against a basket of currency was
helped precious metals. A softer U.S. currency makes
dollar-priced commodities, such as gold, more affordable for
holders of other currencies.
Bullion was still on track, however, for a 7 percent loss
this week, the biggest fall since the end of September, and it
remained vulnerable to a deepening euro zone debt crisis and
rising funding stress.
"Gold took a beating this week and today bounced a bit as
investors see this as a good moment to buy, but it is still
vulnerable," Credit Agricole analyst Robin Bhar said.
"I expect gold will stay under pressure as the funding
stress is increasing the need for liquidity, and gold is seen as
one of the assets to liquidate."
The need for cash has overwhelmed gold's traditional status
as a safe haven in past few months, putting the metal on course
for its first quarterly fall since end-September 2008 when the
global credit crunch was at its worst.
Gold has, therefore, benefited recently from developments
that have reduced risk aversion and the flight to cash.
The metal was supported by better-than-expected U.S. job
data on Thursday, which suggested a weak economy is gradually
improving and supported financial markets.
It got also got a boost, along with financial markets, after
Spain attracted solid demand for its bonds on Thursday, helping
to ease concerns the country could be among the next to fall in
the euro zone's debt crisis.
"At the moment a lot people are resting their hopes on the
fact that physical demand will pull gold back up again, but
because of the amount of speculative investment that has gone
into this market over the last years, it is obviously exposed on
that basis," said Ole Hansen, a senior manager at Saxo Bank.
"Gold has received a lot of new followers over the last few
years because of its long-term trend, and if we should see a
failure to recover, investors might say, 'Look I lost a lot of
money and I don't dare to try once again', so it very much
depends on what prices will do over the next couple of weeks,"
FUNDING STRESS
Gold benefits when central banks print money or cut interest
rates or when money mangers diversify assets.
"With access to liquidity being constrained, market
participants have increasing problems to refinance," Credit
Suisse said in a research note.
"As a result they have to sell their assets - including
precious metals - to raise the much needed cash. This is the
main reason why gold prices fall on days of increasing funding
stress."
In other precious metals, spot silver gained as much
as 2.68 percent to trade at $29.90 an ounce, before easing to
$29.44.
* Funding stress weighs on gold prices
* Gold on course for 7 percent weekly loss
* Fears of industrial decline may hit platinum, palladium
LONDON, Dec 16 (Reuters) - Gold rallied on Friday
after a sharp pullback in the four previous sessions, gaining
support from a weaker dollar, but the metal remained headed for
its biggest weekly fall in almost three months.
Spot gold rallied as much as 1.96 percent to
$1,600.49 per ounce and then traded at $1,585.99 by 1432 GMT,
off a 2-1/2-month low of 1,560.36 hit in the previous session.
U.S. gold rose about 1 percent to $1,588.40 per
ounce.
A slightly weaker dollar against a basket of currency was
helped precious metals. A softer U.S. currency makes
dollar-priced commodities, such as gold, more affordable for
holders of other currencies.
Bullion was still on track, however, for a 7 percent loss
this week, the biggest fall since the end of September, and it
remained vulnerable to a deepening euro zone debt crisis and
rising funding stress.
"Gold took a beating this week and today bounced a bit as
investors see this as a good moment to buy, but it is still
vulnerable," Credit Agricole analyst Robin Bhar said.
"I expect gold will stay under pressure as the funding
stress is increasing the need for liquidity, and gold is seen as
one of the assets to liquidate."
The need for cash has overwhelmed gold's traditional status
as a safe haven in past few months, putting the metal on course
for its first quarterly fall since end-September 2008 when the
global credit crunch was at its worst.
Gold has, therefore, benefited recently from developments
that have reduced risk aversion and the flight to cash.
The metal was supported by better-than-expected U.S. job
data on Thursday, which suggested a weak economy is gradually
improving and supported financial markets.
It got also got a boost, along with financial markets, after
Spain attracted solid demand for its bonds on Thursday, helping
to ease concerns the country could be among the next to fall in
the euro zone's debt crisis.
"At the moment a lot people are resting their hopes on the
fact that physical demand will pull gold back up again, but
because of the amount of speculative investment that has gone
into this market over the last years, it is obviously exposed on
that basis," said Ole Hansen, a senior manager at Saxo Bank.
"Gold has received a lot of new followers over the last few
years because of its long-term trend, and if we should see a
failure to recover, investors might say, 'Look I lost a lot of
money and I don't dare to try once again', so it very much
depends on what prices will do over the next couple of weeks,"
FUNDING STRESS
Gold benefits when central banks print money or cut interest
rates or when money mangers diversify assets.
"With access to liquidity being constrained, market
participants have increasing problems to refinance," Credit
Suisse said in a research note.
"As a result they have to sell their assets - including
precious metals - to raise the much needed cash. This is the
main reason why gold prices fall on days of increasing funding
stress."
In other precious metals, spot silver gained as much
as 2.68 percent to trade at $29.90 an ounce, before easing to
$29.44.